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LIBRARY 

OF  THE 

UNIVERSITY  OF  CALIFORNIA 

GIFT  OF 

MRS.   MARY  WOLFSOHN 

IN    MEMORY  OF 

HENRY  WOLFSOHN 


te]g^|g^||rJarJlir:il>rJtr^^^ 


ING, 


^m0(c  ctrtb  ^oxthlc  (Snlrg 


PKACTICALLY  ILLUSTRATING 

MERCHANTS',  MANUFACTURERS',  PRIVATE  BANKERS',  RAIL 
ROAD,  AND  NATIONAL  BANK  ACCOUNTS, 

INCLUDING  ALL   THE   LATE  IMPROVEMENTS  IN  THE   SCIENCE. 


■with:  j^  coi^iotjs  iistide^^. 


By     F.     D  U  F  F, 

FORMERLY   MERCHANT, 
FOUNDER  AND   PROPRIETOR   OF   DUFF's   MERCANTILE   COLLEGE,  OF   PITTSBURGH,  PA. 


Let  no  man  enter  into  business  while  he  is  ignorant  of  the  manner  of  regulating  books.  Never  let  him  imagine  that  any  de- 
gree of  natural  ability  will  supply  the  deficiency,  or  preserve  multiplicity  of  afifairs  from  inextricable  confusion. — Dr.  Johnsox. 


TWENTIETH  EDITION.  ENURGED  AND  REVISED. 


NEW   YORK: 
RPER  &   BROTHERS,   PUBLISHERS, 

FBANKLIN  SQUARE. 


1871. 


v^f^' 


6 


Entered  according  to  Act  of  Congress,  in  the  year  1867,  by 

P.    DUFF, 

in  the  Clerk's  Office  of  the  District  Court  of  the  United  States  for  the  Western  District  of  Pennsylvania. 


4®=-  Blank  books,  ruled  complete  to  match  this  work,  manufactured  by  R.  C.  ROOT,  ANTHONY  &  CO.,  Stationers  and 
Account-Book  Manufacturers,  21  Nassau  Street,  New  York.  These  books  are  made  of  fine  extra  size-paper,  with  the  author's 
directions  to  teachers  printed  upon  each  cover. 


STEREOTYPED  BY  MACKELLAR,  SMITHS  &  JORBAK, 
PHILADELPHIA. 


DUFF'S  BOOK-KEEPING. 


EEMARKS    UPON    THE    TWENTIETH    EDITION. 

The  early  editions  of  this  work  were  the  result  of  nearly  twenty  years'  accumulated 
experience  in  American  and  European  commerce;  and  there  is  no  undue  assumption 
in  asserting  that  it  introduced  improvements  in  Commercial  Education  previously  un- 
known in  schools.  Experienced  business  men  in  all  quarters  promptly  sanctioned  these 
improvements ;  and  the  Legislature  of  Pennsylvania  recognized  the  public  value  of  them, 
in  promoting  the  ends  and  purposes  of  Commerce,  by  granting  the  author  an  Act  of 
Incorporatiouj  with  perpetual  Charter,  for  establishing  one  of  the  first  Commercial  Colleges 
in  America. 

The  favorable  reception  and  extensive  sale  of  the  former  impressions,  have  induced 
the  author  to  prepare  a  new,  revised  and  enlarged  edition,  in  which  he  has  spared  neither 
labor  nor  expense,  having  added  nearly  two  hundred  pages  of  new  matter,  including  a 
full  set  of  Joint  Stock  Bank  Books,  exemplifying  all  the  changes  required  for  conducting 
bank  accounts  under  the  new  National  Banking  law,  now  adopted  by  nearly  all  American 
banks.  He  has  also  given  all  the  most  approved  forms  of  modern  Kailroad  accounts ;  and, 
as  no  system  of  accounts  has  yet  appeared  for  the  use  of  Private  Bankers,  he  has  added  a 
full  set  of  books  expressly  adapted  to  their  business. 

The  work  now  includes  all  the  improvements  for  assisting  the  teacher  and  perfecting 
the  education  of  the  Commercial  Student,  suggested  by  upwards  of  twenty-seven  years' 
daily  experience  in  instructing  large  classes  in  this  branch  of  education. 

Referring  to  the  testimonials  appended  to  its-  pages,  he  feels  confident  that  Clerks, 
Merchants,  Bankers,  and  all  persons  who  buy  or  sell,  or  have  any  thing  to  do  with 
accounts,  will  find  the  study  of  this  work  contribute  to  their  advancement.  In  this  hope, 
it  is  again  respectfully  submitted  to  the  public  by 

The  Author. 
3 


DUFFS  BOOK-KEEPING. 


INTEODUCTORY  REMARKS  UPON  THE  FIRST  EDITION. 

To  Merchants  : — 

In  announcing  a  new  work  to  the  public,  it  is  obviously  tbe  writer's  first  duty 
to  state  to  his  readers  wherein  he  offers  improvements  in  the  subject  upon  which  he  treats. 
The  author's  objects  in  adding  to  the  pul)lications  upon  this  subject  are  briefly  these : — 

EiRST.  To  provide  instructors  with  the  means  of  imparting  more  perfect  and  practical 
instruction  than  can  be  given  from  any  work  now  in  use. 

Second.  To  introduce  several  new  and  important  modern  improvements,  having  for  their 
object,  the  abbreviation  of  the  process,  and  greater  security  against  error. 

Third.  To  supply  all  classes  of  merchants,  mej3hanics,  &c.,  with  a  complete  book  of 
reference.  Nearly ^all  the  works  now  in  use  being  prepared  almost  exclusively  for  the  use 
of  the  wholesale  merchant,  leaving  the  mechanic  and  retailer  with  no  other  assistance  than 
such  as  they  can  draw  from  books  prepared  for  another  department  of  commerce — a  fact 
which  may  account  for  the  imperfect  knowledge  of  book-keeping  among  certain  classes 
of  traders. 

Among  houses  conducting  the  more  extensive  and  complicated  operations  of  commerce, 
irregularity  in  the  management  of  their  accounts  is  now  becoming,  perhaps,  a  rare  occur- 
rence. The  conductors  of  such  establishments,  no  doubt,  strongly  impressed  with  the  disas- 
trous consequences  of  any  confusion  in  this  department,  take  effectual  means  to  guard  against 
it,  by  informing  themselves  of  the  most  accurate  and  most  improved  methods  of  manage- 
ment. But  this  is  far  from  being  the  case  among  the  middle  and  smaller  class  of  dealers 
and  mechanics.  The  frequent  failures  among  them  often  disclose  the  most  culpable  igno- 
rance and  negligence  in  the  management  of  their  accounts :  and  as  the  extensive  dealers 
are,  themselves,  often  among  the  severest  sufferers  by  these  events,  they  should  consider  it 
their  duty  to  make  proper  inquiry  into  the  business  qualifications,  as  well  as  the  solvency 
and  integrity  of  those  to  whom  they  extend  confidence.  And  they  should  use  their  influence 
to  impress  it  strongly  upon  the  minds  of  such  persons,  that  the  want  of  that  knowledge, 
which  is  to  be  obtained  alone  from  systematic  accounts,  must  always  more  or  less  increase 
the  hazard  of  ultimate  miscarriage  in  business ;  and  that  it  is,  therefore,  the  first  and  most 
obvious  duty  of  every  dealer  and  trader,  small  and  great,  to  keep  a  precise  and  methodical 
account- of  his  transactions.  If  young  merchants  had  one-tenth  part  of  the  author's  expe- 
rience in  winding  up  and  adjusting  deranged  books  of  account,  especially  in  partnership 
business,  they  would  guard  against  confusion  in  their  books  with  as  much  vigilance  as  they 
do  against  fire  or  shipwreck. 

In  some  countries,  this  duty  of  the  merchant  is  watched  over  by  the  government,  and 
enforced  by  many  anxious  legislative  provisions.*  But  with  us  it  is  left  to  be  impressed 
sokly  by  public  opinion ;  and  by  the  dread  of  that  reproach,  loss  of  credit  and  loss  of  cha- 
racter, that  must  ever  follow  the  detection  of  ignorance  and  irregularity  in  the  manner  of 
recording  business  transactions. 

*  The  Frencli  Code  de  Commerce  gives  a  minute  description  of  the  several  books  which  every  tradesman 
must  keep. 

5 


DUFF'S  BOOK-KEEPING. 


TO  TEACHERS. 


Tins  work  is  divided  into  two  parts ;  the  first  part  containing  in  a  clieap  and  conve- 
nient form  f(3r  teachers,  a  complete  course  of  instruction  and  practice  upon  Single  and  Double 
Entry,  embracing  all  that  is  necessary  for  the  learner  to  understand  thoroughly,  before  he 
attempts  to  write  in  business  books. 

The  SECOND  PART  is  designed  for  the  assistance  of  merchants  and  accountants  in  the 
counting-room.  Both  parts  may  be  had  bound  together,  or  the  first  part  in  a  separate  volume 
when  required. 

This  work  is,  by  its  minuteness  and  simplicity  of  illustration,  intended  to  assist  the  learner, 
and  thereby  to  assist  his  teacher.  No  pains  have  been  spared  to  bring  down  the  principles 
of  the  science  to  the  level  of  the  humblest  capacity.  In  perusing  the  work,  persons  unac- 
quainted with  the  labors  of  the  class-room,  will  perhaps  be  struck  with  the  repetition  of  re- 
ferences, back  to  the  same  rules  and  definitions;  but  those  who  understand  the  art  of  direct- 
ing the  progress  of  the  human  mind — experienced  preceptors — know  well  how  much  success- 
ful and  efiicient  instruction  depends  upon  making  those  principles  already  acquired  explain 
new  difficulties. 

It  has  always  been  my  opinion,  that  a  course  of  school  instruction  in  Book-keeping  might 
be  so  framed,  that  the  teacher  would  have  little  to  do  but  to  see  that  his  pupils  followed  the 
directions  laid  down  for  their  guidance,  which  should  leave  them  no  means  of  getting,  through 
the  exercises  without  mastering  the  subject.  And  if  teachers  would  strictly  follow  my  direc- 
tions, in  teaching  from  this  work,  I  shall  be  satisfied  to  allow  an  impartial  examination  of 
their  pupils  to  stand  as  a  test  of  the  merits  of  this  attempt  to 'effect  that  purpose. 

The  teacher  will  of  course  instruct  those  persons  only  in  Single  Entry  who  purpose  to 
keep  their  books  in  that  way  and  who  desire  to  learn  the  science  no  farther.  Those  who 
learn  the  science  upon  the  Double  Entry  principle  always  understand  Single  Entry;  it 
therefore  requires  no  attention  from  the  Double  Entry  student,  except  a  perusal.  The  in- 
troductory set  of  the  Double  Entry  course  is  only  intended  for  those  having  no  previous 
knowledge  of  the  subject.  Those  who  are  partially  acquainted  with  it,  may  commence  with 
the  rules  and  oral  exercises  on  page  38.  In  this  set  they  will  obtain  a  full  knowledge  of  all 
the  principles  of  the  science. 

To  persons  engaged  in  business,  time  is  often  a  great  consideration.    To  such  persons  you  t 
can  give,  from  this  treatise,  a  perfectly  effective  course  of  instruction  by  omitting  all  writing/ 
except  the  Journal  and  Ledger.    Direct  them  to  journalize  the  transactions  from  the  printed/ 
Day  Book.     But  all  the  other  directions,  in  reference  to  the  oral  exercises  upon  the  rules 
and  the  auxiliaries,  oral  journalizing,  &c.,  must  be  strictly  carried  out  to  ensure  thorougll 
instruction.  / 

The  two  sets  of  books  embraced  in  the  second  part,  though  different  in  form,  comprehend 
no  departure  from  the  governing  principle  of  the  science,  and  will  not,  therefore,  be  difficult 
to  acquire  by  those  who  are  well  versed  in  the  principles  of  the  science.  But  I  would  re- 
commend a  course  of  exercise  upon  them,  before  attempting  to  put  them  in  practice  in 
business. 

In  transcribing  our  Single  Entry  Day  Book,  or  any  of  those  books  where  our  Ledger 
folios  are  inserted  as  post  marks,  the  learner  must  be  cautioned  to  leave  the  columns  blank, 
to  insert  his  own  post  marks. 

Farther  directions  for  teaching  will  be  found  interspersed  throughout  the  work,  whenever 
they  are  deemed  necessary  to  guide  the  instructor  in  his  progress. 

New  York,  August,  1S6G. 


SINGLE  ENTRY 

BOOK-KEEPING, 

EXEMPLIFIED  IN  A  PARTNERSHIP  BUSINESS,  CONCLUDING  WITH 

AN  ILLUSTRATION  OF   THE   PARTNERSHIP   SETTLEMENT 

AND  DIVIDEND   OF   THE   PROFITS. 

PRESENTING,  ALSO,  THE  REQUISITE  STEPS  FOR  TRANSFORMING  THE  SAME 
LEDGER  INTO  A  DOUBLE-ENTRY  ONE. 


PRELIMIJSTAEY    REMARKS. 

It  may  perhaps  be  asked  why  Book-keeping  by  Single  Entry  is  presented  in  a  work 
containing  the  explanation  of  the  science  by  Double  Entry,  since,  the  acquirement  of  the 
latter  must  necessarily  bring  a  knowledge  of  the  former.  This  is  perfectly  true ;  and  I 
have  embodied  my  views  in  reference  to  it,  in  my  directions  to  the  teacher,  on  the  last  page. 
Those  who  have  the  means,  capacity,  and  inclination  to  learn  the  science  upon  the  double 
entry  principle,  will  not,  therefore,  do  more  than  merely  peruse  this  set,  for  I  do  not  imagine 
that  any  person  thoroughly  versed  in  the  double  entry  process  will  ever  keep  his  books  in 
any  other  way.  But  it  is,  at  the  same  time,  equally  certain,  that  there  is  a  large  class  of 
persons,  both  in  town  and  country,  such  as  farmers,  mechanics,  retailers,  milliners,  and 
other  dealers,  who,  for  various  reasons,  are  not  inclined  to  keep  their  accounts  by  double 
entry;  and,  as'every  person  who  buys  or  sells  any  thing  must  keep  accounts  in  some  way, 
the  author  feels  confident  that  the  following  illustration  of  this  simple  but  useful  form 
of  accounts  will  prove  serviceable  and  acceptable  to  this  class  of  dealers.  The  managers 
and  teachers  of  public  schools  will  also  find  it  worthy  of  their  attention;  for,  however  limited 
a  young  man's  education  may  be,  a  knowledge  of  Book-keeping,  to  this  extent  at  least, 
should  form  a  part  of  it.  In  this  set  will  be  found  a  practical  illustration  of  a  process  not 
to  bo  found  in  any  other  work  that  we  have  seen — transforming  the  Single  Entry  Ledger 
into  a  double  entry  one.  All  simple  as  this  process  may  appear  after  it  is  explained,  it  will 
be  found  that  many  accountants  are  not  aware  that  there  is  any  way  of  changing  the  prin- 
ciple of  keeping  the  books  but  by  the  laborious  and  tedious  process  of  transferring  all  the 
accounts  to  a  new  Ledger, — an  operation  that  is  seldom  necessary  until  the  old  Ledger  is 
filled. 


GENERAL  RULES  FOR 

1.  Give  the  Rule  for  opening  books 

in  private  business. 

2.  Give  the  Rule  for  opening  books 

in  partnership  business. 

3.  When  is  a  person  Dr.  ? 


4.  When  is  a  person  Cr.  ? 


5    What   is    the    rule    respecting 
orders,  bills,  drafts,  &c.  ? 

6.  Which   side  of  the   Ledger  is 
used  for  the  Drs.  and  Crs.  ? 


DEBITING  AND  CREDITING  ACCOUNTS. 

1.  I  credit  the  stock  account,  which  represents  my  own 

name,  for  what  I  invest  in  business,  and  if  I  owe 
any  thing  I  debit  it  for  the  amount. 

2.  I  credit  each  pSrtner  for  what  he  pays  in,  and  debit 

him  for  what  he  draws  out. 

3.  When  he  gets  into  my  debt,  he  is  Dr.  for   the 

amount,  and 
When  I  get  out  of  his  debt,  he  is  Dr.  for  what  I 
,         pay  or  cease  to  owe  him: 

4.  When  I  get  in  to  his  debt,  he  is  Cr.  for  the  amount,  and 
When  he  gets  out  of  my  debt,  he  is  Cr.  for  what  ho 

pays  or  ceases  to  owe  me. 

5.  Credit  a  person  always  when  you  draw  on  him  on 

your  own  account,  and  debit  him  when  he  draws 
on  you. 

6.  The  Drs.  always  on  the  left,  and  the  Crs.  always  on 

the  right. 


SINGLE   ENTRY  BOOK-KEEPING. 


NAMES,  DESCRIPTION,  AND  USES  OF  THE  BOOKS  REQUIRED. 

The  Day  Book  and  Ledger  are  the  only  books  generally  used  in  tliis  mode  of  keeping 
accounts.  If  Bill  Books,  or  any  other  auxiliaries,  should,  in  any  case,  be  required,  the  form 
and  directions  for  keeping  them  will  be  found  in  our  Double  Entry  Set  (p.  45).  I  would, 
however,  recommend  Single  Entry  Book-keepers  to  keep  a  Cash  Book,  and,  in  some  cases, 
a  Cash  Sales  Book.  In  order  to  make  these  books  thoroughly  understood,  we  subjoin  an 
exemplification  of  each,  in  connection  with  each  other,  and  with  the  following  Day  Book. 
We  begin  with 

THE  CASH  SALES  BOOK. 

In  this  book  is  recorded  a  detailed  account  of.  all  sales  for  ready  cash ;  also  for  cash 
received  for  sales  entered  upon  the  Day  Book,  and  collected  before  posting  to  the  Ledger — 
see  third  Day  Book  Entry,  Sept.  10,  p.  10.  From  this  book  the  amount  is  transferred 
weekly  to  the  Cash  Book,  or  as  m.uch  oftener  as  we  wish  to  balance  that  book,  at  the  same 
time  noting  the  amount  on  this  book — "  Ent'dC.  B.,  p.  00.^^  This  is  more  convenient  than 
the  common  way  of  entering  every  sale  upon  the  Cash  Book,  or  entering  them  first  upon  a 
slate — a  practice  that  can  never  be  recommended,  as  it  is  about  the  same  trouble  to  write 
upon  slate  as  upon  paper,  and  all  future  reference  to  entries  made  in  this  way  is  forever 
prevented  by  rubbing  them  out.  When  the  nature  of  the  business  renders  it  too  difiicult 
to  keep  a  record  of  every  sale,  the  usual  course  is  to  keep  the  money  received  for  sales  during 
the  day  in  a  drawer,  separate  from  that  entered  in  the  Cash  Book,  and  to  count  it  out  and 
enter  it  in  one  sum  in  the  evening  '^  Rec'd  for  sales  this  day.'' 

The  following  illustration  will  sufficiently  explain  the  nature  and  use  of  this  book  : — 

NEW  YORK,  September  1st,  1866. 


1866. 

Sept. 


1 

5old  for  Cash,  viz. — 

1  Vest  and  2  pr.  Pants, 

to  R.  Carpenter, 

4  yds.  Fine  Blk.  Cloth,  @  $6, 

J.'  Manly, 

1  Silk  Hat,  $5.     Box,  25  cts.,* 

4 

1  pr.  fine  Boots,  $6.     Silk  Hat, 

$5,                       J.  Toole, 

1  Mahogany  Sofa, 

do. 

5 

1  Dining  Table,  $50.     1  Toilet  do.,  $10,           F.  Le  Roy, 

6 

1  Rosewood  Piano, 
Music  Stool, 

Entered  Cash  Book,  p.  1. 

8 

3old  for  Cash,— 

1  Saddle,  $15.     Bridle,  $2, 

R.  Trotter, 

9 

.1  Gig  Harness  complete, 
1  Travelling  Trunk, 

do. 

LI 

2  Leaf  her  Hat-boxes, 

15 

1  Bbl.  Flour,  and  cartage, 

- 

F.  Howe, 
Ent'd  Cash  Book,  p.  1. 

16 

Sold  for  Cash,— 

- 

2  Braid  Bonnets, 

Mrs.  Mason, 

1  Velvet  Bonnet,  $8.     Ribbon  and  trimming,  $4, 

18 

Making  2  Silk  Bonnets, 

r 

Making  a  Mantilla,  $4.   4  yds.  Fringe  for  do.,  $4,    Mrs.  Hill, 

20 

4  Lace  Collars,  @  $4, 
Sold  for  Cash,— 

Ent'd  Cash  Book,  p.  1. 

25 

1  Silver  Watch,  No.  4445, 

Samuel.  Gray, 

27 

Repairing  a  Gold  Repeater, 

G.  W.  Smith, 

29 

Engraving  1  dozen  Tablespoons, 

F.  Robb, 
Ent'd  Cash  Book,  p.  1. 

*  When  a  sale  is  made  to  an  unknown  person,  the  name  may  be  left  blank. 

22 
24 
5  ^5 

11 

20 

60 

150 

5 


17 

14 

12 

3 

6 


12 

12 

5 

8 
16 


40 
2 
1 


1 297  25 


25 


52:25 


50 


53 


43  i)0 


SINGLE  ENTRY  BOOK-KEEPING. 


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NEW  YOBK,  Monday,  1st  September,  1866. 


Paid,     \ 
.15.  i 


Sept 


Betumed  ) 
Sept.  22.  / 


P.  Duff  and  William  Gordon  having  this  day  entered  into  copart- 
nership under  the  firm  of  Duff  &  Gordon,  they  pay  as  capital 
as  follows : — 
^P.  Duff  is  credited  for — 

Cash  paid  in  per  Cash  Book        ....     1100. 

James  Wood  owes  him  on  account  .         .  200. 

^ David  Cutler  owes  him  on  his  note  .         .         .       150. 


James  Wood  (Carpenter),         Dr. 
Por  the  above  balance  due  P.  Duff 


Cr. 


W.  Gordon  is 

Por  Cash  paid  in  per  Cash  Book     ....  900. 

//    Balance  due  him  from  R.  Martin,  270  Bowery    • .  95. 

//    Merchandise  and  Store  fixtures  per  Inventory,'*'  890. 


Robert  Martin  (270  Bowery),  Dr. 

Por  the  above  Balance  due  W.  Gordon 

(f  — 

William  Gordon,  Dr. 

Por  bal.  due  by  him  to  Wm.  Hay  assumed  by  firm  250. 

//  //  //         T.  P.  Cope  &  Sons,  de.         .         265. 

If  : 

William  Hay,  *     Cr. 

Por  balance  due  him  by  W.  Gordon  as  above 
, — . ft  

T.  P.  Cope  &  Sons,  Cr. 

Por  the  above  balance  due  them  by  W.  Gordon 

'  10.      -- —  .  

James  Wood,  Cr. 

Por  his  bill  of  Carpenter  work  for  repairing  store 


If 
Dr. 


James  Wood, 

Por  amt.  paid  hife  order  for  Merchandise  to  John  Toole      . 

If  

'Prederick  Howe,  Dr. 

Por  1  barrel  Pine  Plour.     (Cartage,  25  cts.) 

:.========^  20.  ^ 

James  Carter,  Dr. 

Por  lib  Tea.  $1 ;  121b  Sugar,  $1 ;  lib  Raisins,  25,       $2  25 

If  1  bag  1601b  Rio  Coffee        .         .         .     @  10.     16^ 

„ 

*  Robert  Manly,  Dr. 


Por  1  best  Silk  Hat    . 


James  Day, 

Por  Cash  on  account 


// 
Dr. 


1.  Duff  is  hero  credited  for  the  reasons  given  in  Rule  2. 

2.  Ctitler  is  not  debited  on  book  account  for  this  sum,  because  we  hold  his  note  for  it. 

3.  We  do  not  require  to  open  an  account  with  llowe  for  this  entry,  because  it  was  paid  be- 

fore posting. — See  Cash  Sales  Book. 

4.  If  he  had  returned  this  after  posting,  wo  must  then  credit  him  for  the  amount,  when 

returned,  on  the  Day  Book,  and  afterwards  post  as  usual. 
*  The  form  of  an  inventory  can  be  seen  on  pages  59  and  61. 

10 


1450 
200 

1885 
95 

.515 

250 
265 

105 
12 


18 


25 


25 


25 


September  30th,  1866. 


T.  P.  Cope  &  Sons, 
For  bill  remitted  them 


Dr. 


William  Hay,  Dr. 

For  amount  of  bill  remitted  him 


!1 


Robert  Barclay, 

For  4  yds.  Satin  Ribbon, 
//    1  pr.  Silk  Gloves, 
//    16  yds.  Fig'd  Satin, 


Oct.  5. 

Dr. 


@  50  cts.,     82. 


.75 


n 

nVilliam  Hay  (to  close  acct.),       Dr. 

For  our  order  on  James  Wood 

// 
James  Wood,  Cr. 

For  the  above  order 


// 

James  Wood,  Dr. 

For  1  pr.  Waterproof  Boots,  $6.     1  Silk  Hat,  $5, 
============      10. 

^Robert  Barclay,  Dr. 

For  Sundries   .         .         .         . 


@1 

50, 

24.      . 

ik  Hat,  $5, 

. 

. 

^ 

'James  Carter,  Dr. 

For  1  Fine  Black  Dress  Coat 
u    1  full  circle  Cloak,  velvet  trimmed 

Received  cash  on  account  of  the  same  . 

Balance  to  his  debit  .         ... 

=========      20. 


828. 

45.    73. 
.    50. 


Jas.  Wood  (per  order  to  J.  Pine),  Dr. 

For  1  barrel  Fine  Flour, 86.50 

//    1  gal.  Molasses,  50  cts.  lib  Tea,  75  cts.  lib  Pepper,  25  cts.,  1.50 

Per  bill     . 


P.  Duff, 

For  1  Velvet  Yest, 


i-2 


It 
Dr. 
1  Fine  Black  Dress  Coat,  $28, 
// 

W.  Gordon,  Dr. 

For  1  pr.  Ladies'  Boots,  82.     1  pair  Men's  do.,  86.50, 

..      30.        = 

James  Carter,  -      Cr. 

For  his  invoice  of  Flour,  ..... 


Robert  Barclay,  Cr. 

For  his  invoice  of  Cloths,  &c. 

*r  '. 

James  Day,  Dr. 

For  a  full  suit  of  Clothes,  835.     A  f  circle  Cloak,  830 


1.  When  this  entry  is  posted,  Uay's  account  must  be  closed,  as  you  see  on  our  Ledger. 

2.  This  is  an  imperfect  entry.    On  the  Day  Book  always  specify  what  you  sell.— See  note  6,  p.  24. 

3.  If  this  $50  had  been  paid  on  account  of  a  former  debt,  it  must  appear  at  Carters  credit ;  but  aa  it 

was  paid  on  account  of  this  particular  purchase,  this  entry  is  sufficient  —See  note  4,  p.  28. 

11 


November  1st,  1866. 


*  Robert  Martin  (to  close  acct.),     Cr. 
Fqr  his  invoice  of  Silks   . 


//    casli  in  full 


67. 

28. 


Robert  Barclay, 

For  30  barrels  Superfine  Flour 


6. 

Dr. 

// 
Dr. 


.     @$6. 


T.  P.  Cope  &  Sons, 

For  our  note  in  full  for  balance  of  account    . 


5cts.,     $11. 
37J  cts.,      .75 


'Robert  Barclay  (to  close  acct.),    Cr. 

For  his  note  for  balance  of  his  account  in  full   . 

===========      10.       ^— — 

Robert  Martin,  Dr.  " 

For  1  barrel  of  Sugar,  241ib. 

Tare,  _21^        Nett  220ib, 
n    2ib  Sperm  Candles,  .... 

II  

T.  P.  Cope  &  Sons,  Cr. 

For  their  invoice  of  Dry  Groods  and  Grroceries 

Less  paid  them  on  account  cash 300. 

Balance  to  their  credit 

20. 

'Robert  Evans  (Buffalo),  Dr.  (g.  4  months. 

For  12  pair  Waterproof  Boots 
//    24  //  //  Light  . 

//    24    n    Boys' Shoes       .... 
//    Packing  Case  and  Cartage  . 

: II  . 

James  Carter,  Dr.  @  3  months. 

For  1  ps.  S.  Fine  Black  Cloth,  No.  1288.  24^ 
I'     II  n      Blue      //  1299.  25.^  50  yds.,  (^$4.   $200. 

//   End       //      Green    ii  1320.    '  ^"     7    //  3.       21. 

//   Wrapper  and  Cartage       .......     .25 

=^ —  30. 

Robert  Martin,  Cr. 

For  his  account  of  Hosiery  against  William  Gordon 


1.25 


96. 
144. 
30. 
1.25 


*  William  Gordon,  Dr. 

For  amount  assumed  with  R.  Martin,  as  above,      .... 

: II 

James  Day,  Cr. 

For  3  months'  wages  from  1st  Sept.  to  date,  as  foreman,  @  $50  ^J  mo. 


n 
Dr. 


*  James  Day, 

For  Cash  on  account  Forty-one  Dollars 


James  Day. 


1.  See  that  you  close  Martin's  account.    When  this  is  posted  it  will  balance. 

2.  Barclay's  account  must  now  be  credited  for, this  note  and  closed. 

3.  It  is  well  to  specify  the  terms  of  sale  both  upon  your  Day  Book  and  the  Invoice. — See  Form  3, 

p.  20. 

4.  Gordon  is  Dr.  because  he  gets  in  debt  to  the  firm  for  assuming  his  debt  to  Martin. 
6.  Business  men  will  find  this  a  convenient  way  of  taking  receipts. 

12 


95 

180 
65 

81 

11 

500 


75 


75 


271 


25 


221 

2 

2 

150 
41 


25 

25 
25 


December  1st,  1866. 


James  Day  (to  close  acct.), 
For  cash  in  full  . 


Dr. 


Dr. 


P.  Duff, 

For  a  Winter  Frock,  $35.     Hat,  $ 
//    Cash  paid  George  Cutler's  bill 


40. 
21. 


„  — . 

P.  Duff,  ■  Cr. 

For  Cash  Keceived  for  his  bill  on  Gibson,  Bright  &  Co.,  London    . 

T.  P.  Cope  &  Sons,  -  Cr. 

For  their  invoice  of  Broad  Cloths  and  Silks 

. _         If  . — , 

William  Hay,  Cr. 


For  his  invoice  of  Prints,  &c. 


•      -  15.        = 

James  Wood,       per  Mrs.  W.  Dr. 

For  20  yards  Figured  Silk 
ff    16     u      English  Prints 

u  

James  Wood,  Cr. 

For  his  bill  of  new  door  and  window  shutters 

===========  20.       = 


@1.50    30. 
@     25      4. 


W.  Gordon, 


Dr. 


For  12  yards  Fine  Black  Cloth 

" It  

James  Wood  (to  close  acct.),         Cr. 

For  8  yards  Prints  returned,  $2.     Cash  in  full,  $71  . . 

■=       31.       == 

P.  Duff,  Dr. 

For  Cash  paid  House  Kent  to  date,  $140.     Taxes,  $17.^ 


(g$6. 


William  Gordon,  Dr. 

For  Cash  paid  House  Kent  to  date,  $100.     Taxes,  $4.13    . 


STATEMEIfT  exhibiting  our  Profits  and  Dividends. 


P.  Duff       .       .       ...       .       .       .     f .  1 

W.  Gordon n 

Eobert  Martin .  n 

Wm.  Hay 2 

T.  P.  Cope  &  Sons // 

James  Carter  ........// 

Robert  Evans 

Cash n         .         . 

Merchandise . 

Bills  Receivable        .         .         . 

Bills  Payable 


Surplus  effects 
1     P.  Duff's  half  gain  to  his  credit 
1  1  W.  Gordon's     "       to  his  credit 


254 

701 

11 


262 

271 

8634 

336^ 

81 


8582 
7948 


633 


88 


75 


76 


Liabilities. 


2438 

1885 

2 

800 
2500 

258 


65 


7948 


2000 
800 


26 


25 


13 


REMARKS  UPON  THE  DAY  BOOK. 

All  our  transactions  are  generally  first  entered  upon  the  Day  Book ;  hence  it  is  called  ^ 
the  book  of  original  entries,  and  is  always  referred  to  when  full  particulars  or  explanations 
are  called  for.  It  is  therefore  obvious  that  all  copying  into  it  from  slates  or  waste  pieces  of 
paper  ^is  liable  to  destroy  its  testimony.  If  the  nature  of  the  business  requires  original 
entries  to  be  made  upon  Time  Registers  or  other  memorandum  books,  these  books  ought 
always  to  be  paged  and  the  Day  Book  entry  should  show  its  reference  to  them. 

Pass-books  are  often  useful  between  persons  having  very  frequent  transactions  with  each 
other ;  but  we  must  caution  the  Accountant  against  placing  any  dependence  upon  another 
person's  pass-book.  His  Day  Book  must  record  every  transaction  as  if  no  such  book 
existed. 

Though  the  preposition  To  is  correctly  used  in  their  Journal  by  Double  Entry  Book- 
keepers, yet  in  the  Single  Entry  Day  Book  the  expression  is  unmeaning  and  ungram- 
matical.  I  have  therefore  substituted  For,  as  more  correct  and  agreeable  to  the  idiom  of 
our  language.  As  you  post  the  entries  from  the  Day  Book  to  the  Ledger,  ^insert  the  page 
of  the  Ledger  in  the  marginal  column  on  the  left  of  the  page.  This  serves  as  a  post  mark, 
and  shows  how  far  your  posting  is  completed.  You  must  afterwards  *  compare  all  the 
entries  in  the  Ledger  with  those  in  the  Day  Book,  check-marking  them  thus  \/  with  a 
pencil  both  on  the  Day  Book  and  Ledge-r.  No  person  can  expect  to  keep  his  books  per- 
fectly correct  without  this  precaution. 

ON  OPENING  THE  LEDGER. 

The  following  Ledger  is  ruled  in  the  common  form,  and  it  is  the  most  suitable  for  any 
kind  of  business.  The  page  is  divided  by  a  perpendicular  line  making  what  is  called  a 
folio,  or  if  the  paper  be  small  it  will  be  better  to  take  two  pages  for  a  folio.  The  space 
intended  for  each  person's  Account  is  headed  in  large  text  hand  with  his  name,  or,  if  it  be 
a  firm,  with  its  legal  title.  Every  Account  occupies  both  folios^  the  left  or  Dr.  side  repre- 
senting ^our  Account  against  him,  and  the  right  or  Cr.  side  *his.  Account  against  us.  The 
difiierence  represents  Uhe  Balance  we  owe  him  or  which  he  owes  us,  as  the  case  may  be. 
The  abbreviations  Dr.  and  Cr.  are  ® never  required  except  at  the  head  of  the  page.  In 
opening  a  business  Ledger  always  index  each  Account  before  you  head  it,  as  an  omission  in 
the  Index  often  causes  much,  trouble  and  sometimes  mistakes.  In  business  the  Index  gene- 
rally has  a  page  allotted  to  each  letter  of  the  alphabet.  The  following  illustration  will  here 
be  sufficient  to  explain  it. 


INDEX  TO  THE  LEDGER. 


A. 

Barclay,  Robert    . 

.     2. 

Evans,  Robert  . 

2. 

Bills  Receivable 

3. 

Gordon,  William 

.     1. 

Bills  Payable 

.    3. 

Hay,  William   . 

2. 

Balance  Account 

3. 

Martin,  Robert     . 

.     1. 

Cope,  T.  P.  &  Sons 

.     2. 

Merchandise     . 

3, 

Carter,  James  . 

2. 

Wood,  James 

.     1.3 

Cash    .... 

.     3. 

Duff,  P 

1. 

Day,  James          .         i 

.     2. 

1.  What  is  the  Day  Book  called  ? 

2.  What  objections  aro  there  to  copying  from  a  slate  into  the  Day  Book? 

3.  What  is  to  be' done  as  you  post  the  entries  from  the  Day  Book  to  the  Ledger? 

4.  What  is  to  be  done  after  you  have  posted  the  Day  Book  into  the  Ledger? 

5.  What  does  the  left  folio  of  an  Account  in  the  Ledger  contain  ? 

6.  Wliat  does  the  right  one  contain? 

7.  Wliat  does  the  difference  represent  ? 

8.  Where  are  the  abbreviations  Dr.  and  Cr.  required  ? 

14 


Dr. 


DUFF. 


Cr. 


1866. 

1 

Oct. 

20! 

Dec. 

1 

81 

1 

For  Coat  and  Vest 


//    a  Coat,  §35.    Hat,  $5 
//  ■  Cash  p'd.  Cutler's  bill 


Taxes  &  Rent 
Balance 


254.83 

fol. 


36 

40 

21 

157 

2500 


2754 


88 


1.  What  is  to  be  done  with  this  and  the  following  account 

when  closing  the  Ledger? 

2.  How  are  they  then  closed?  - 


1860. 
Sept. 
Dec. 


For  Sundries  paid  as  cap. 
//  Cash  for  bill  on  Lond. 
//   his  ^  net  profit     2438. 

254.' 
21^12 


1.  They  remain  open  until  the  gain  or  loss  is  ascertained 

(see  Day  Book  3)  and  entered. 

2.  They  then  close  into  balance  like  any  other  account. 


WILLIAM 


GORDON. 


1866. 

Sept. 

1 

Oct. 

20 

Nov. 

30 

Dec. 

20 

31 

For  his  debts  assumed 
//    2  pr.  Boots 
//    Martin's  bill 
11    12  yds.  Cloth 
//    Cash  p'd  taxes  &  rent 


Balance 


fol. 


1 

515 

2 

8 

3 

2 

4 

72 

►    104 

3 

1500 

2201 

88 


1.  What  does  the  balance  entry  at  this  and  the  preceding  ac- 

count represent,  and  when  are  they  transferred  to  the 
balance  account? 

2.  How  are  these  balances  found? 

3.  How  are  they  disposed  of  in  re-opening  the  books  ? 


Sept. 
Dec. 


For  Sundries  paid  as  cap. 
//   his  i  net  profit     i885. 


1.  They  represent  each  partner's  present  net  capital,  and  are 

the  last  transfers  to  the  balance  account. 

2.  By  taking  the  difference  between  the  two  sides  of  the  ae. 

counts  after  they  are  credited  for  their  share  of  the  gain. 

3.  These  balances  are  carried  to  the  respective  partners' 

credit. 


ROBERT 


(270  Bowery.) 


MARTIN. 


1866. 

Sept. 

1 
10 

For  bal.  due  W.  Gordon 

1 
3 

OSS 

side 

95 

1866. 

Nov. 

Dec. 
Dec. 

1 

30 
31 

For  Sundries 

3 

3 

3 

95 

Nov. 

Sugar,  $11.    Candles,  75 
7.75 

2.25 

11 

75 

For  acct.  ag't  W.  Gordon 
Balance             fol. 

2 
9 

25 

50 

9.50 

11 

75 

11 

75 

1.  For 

ur 

2.  Whs 

to 

whs 
ider 

It  is 
be 

it  purpose  is  the  line  drawn  acr 
the  $95. 

the  balance  $9.50  at  the  credit 
ione  with  it  in  the  new  account? 

this  account 
and  what  is 

1.  Be 

2.  It 

:^UE 
ceo 
s  w 
ec£ 

e  the  payment  on  the  1st  Nove 

ant. 

hat  he  owed  us  when  balancing  0 

irried  to  his  debit  in  re-opening  t 

mbe 

urb 
hem 

r  squared  the 
ooks,  and  "will 

JAMES 


(Carpenter,  18  Cliff.) 


WOOD. 


Sept. 
Oct. 


For  bal.  due  P.  Duff 
Paid  order  to  Toole 
Pair  Boots,  §6.    Hat,  $5 
Paid  on  order,  J.  Pine 


231. 

J55. 

76. 


Nov.     1  Bal.  due  per  acct.  rend. 
Dec.  jl5jFor  Silk,  $30.  Print,  $4 

I     1  Forward,  fol. 

If.  What  is  the  meaning  of  the  above  balance  entry  of  $76? 
2.  What  is  the  meaning  of  the  last  footing  of  this  account  5 


1 

200 

12 

2 

11 

8 

231 

76 

4 

3 

34 

110 

1866. 
Sept. 
Oct. 

Nov. 


Dec. 


15 


For  bill 'of  work 
Our  order  favor  W,  Hay 
Bal.  to  debit  in  new  acct. 


For  bill  of  work . 


105 
50 

76 


231 


37 


Forward,  fol. 

1.  It  was  the  balance  due  us  on  settlement. 

2.  When  an  account  fills  up,  always  reserve  a  line  at  the 

bottom  and  foot  both  sides  down  upon  the  same  line, 
noting  them  as  above,  "Forward." — See  the  Account 
continued,  fol.  3. 


15 


Dr. 


WILLIAM 


HAY. 


Cr. 


Sept. 
Oct. 


Dec. 


31 


For  Bill  remitted 
II    our  order  on  Wood 


Balance 


fol. 


200 
60 


250 


800 


1.  Why  -was  thifs  acconnt  footed  on  the  5th  October? 

2.  Why  is  the  above  $800  brought  down  to  credit  side? 


1866. 
Sept. 


Dec. 


10 


For  Bal.  due  by  Gordon 


For  Invoice  of  Goods 


For  Bal.  bro't  down 


1 

250 

250  1 

1 

4 

800 

800 

1.  We  balance  this  account  on  the  5th  October  for  the  rea« 

sons  given  in  note  1,  at  R.  Martin's  account,  last  page. 

2.  This  is  the  way  ttie  account  re-opens  if  continued  on  this 

page. 


T.  P. 


(Philadelphia.)       COPE  &  SONS. 


Sept. 
Nov. 


Dec. 


31 


For  Bill  remitted 
//    our  note  in  full 


Balance 


fol. 


JAMES 


2 
3 

3 

200 
65- 

1866. 

Sept. 

Nov. 
Dec. 

1 

10 
10 

265 

2500 

2500 

— 

For  Bal.  due  by  Gordon 


For  Bal.  on  Invoice 
//    Invoice  of  Cloths 


265 


265 


CARTER. 


500 
2000 

2500 


1866. 
Sept. 
Oct. 


Nov.  20 


For  Mdse.  per  Bill 
//    Bal.  on  Bill 
//    Invoice  of  Cloth 


262.50 
258. 
4.50 


1866. 

1 

18 

25 

Oct. 

30 

2 

23 

Dec. 

31 

3 

221 

25 

262 

50 

For  Invoice  of  Flour 
//    Balajnce  fol. 


258 

4 


262 


60 


ROBERT 


BARCLAY. 


1866. 

Oct. 

5 

10 

Nov. 

5 

For  Mdse.  per  Bill 
//    Sundries 
//    Mdse.  per  Bill 


1866. 

2 

26 

75 

Oct. 

30 

25 

Nov. 

5 

3 

180 

231 

75 

For  Invoice  of  Cloth 
//    his  note  in  full 


2 
3 

150 
81 

231 

75 


ROBERT 

^Buffalo.) 

EVANS. 

1866. 

Nov. 

20 

For  Invoice  of  Shoes 

3 

271 

25 

18.66. 
Dec. 

31 

Balance                       fol.    3 

271 

25 

JAMES 


(Foreman.) 


DAY. 


Sept. 
Oct. 
Nov. 
Dec. 


20  For  Cash  on  account 
30  Clothes,  $35.   Cloak,  $30 
30!  For  Cash 
1     //       n 


25 
65 
41 
19 

"150 


1866. 

Nov. 


30 


For  3  mos.  wages  to  date 


150 


150 


16 


Dr. 


JAMES 


1S66. 
Dec. 


Bro't  forw'd,     f. 


O^ 


'^^ 


WOOD. 


Cr. 


X       no 

1866, 
Dec. 

20 

// 

110 



Bro't  forw'd,  f. 
8  yds  Print  ret'd,  @,25 
Cash  m  full 


1 

37 

4 

2 

71 

110 

CASH 

ACCOUNT. 

1866. 
Dec. 

31 

at  is 
Qgle 
V  do  ■> 

For  am't  on  liand 

4 

lowiE 
hanc 

3634 

75 

1866. 
Dec. 

1.  T 

2.  Tl 

31 

lisar 

Singl 
Lodg 
16  am 

Balance                     fol. 

3 

are  r 
we  a 

by  cc 

3634 

75 

1.  Wh 

Si 

2.  Ho\ 

he  use  of  this  and  the  four  fol 
Entry  Book-keeping? 
ve  find  tlie  amount  of  cash  on 

1 
g  accounts  in 

id  the  four  following  accounts 
e  Entry  Book-keeping  until 

iV. 

ount  of  cash  in  hand  is  found 

1  ■           1 

lever  opened  in 
re  closing  the 

)unting  it. 

MERCHANDISE 


ACCOUNT. 


1866. 

Dec. 


31 


For  am't  on  hand  %^  Inv. 


For  Bal.  bro't  down 


5363 


3363 


25 


20 


1.  How  is  tlie  amount  of  goods  on  hand  ascertained  ? 

2.  What  is  to  be  done  with  the  Cash  Merchandise  and  Bill 

Accounts,  if  the  books  are  to  be  hereafter  kept  by  Single 
Entry? 

3.  What  if  thev  are  to  be  kept  by  Double  Entry? 


31 


Balance 


fol. 


3363 


1.  The  Merchandise  on  hand  is  found  by  inventory. 

2.  The  Cash  Merchandise  and  the  two  following  accounts 

remain  closed. 

3.  The  balances  of  these  four  accounts  are  all  brought  down. 


BILLS 


RECEIVABLE. 


1866. 
Dec. 


31 


For  notes  on  hand 


81 


75 


1866. 

Dec. 


31 


Balance 


fol. 


BILLS 


PAYABLE. 


1S56. 

Doc. 


Balance 


fol. 


65 


1.  What  constitutes  the  distinction  between  a  Double  and 

Single  Entry  Ledger? 

2.  Wby,  then,  are  these  accounts  opened  here? 


1866. 
Dec. 


31 


For  our  notes  unpaid 


81 


1.  The  five  last  accounts  belong  ♦©  Double  Entry  books.   No 

accounts  are  kept  in  Single  Entry  books  but  personal 
accounts. 

2.  These  accounts  are  opened  here  only  for  the  purpose  of 

recording  the  partners'  settlement,  and  to  illustrate  the 
manner  of  re-opening  the  Ledger  by  Double  Entry. — 
See  notes  1  and  2,  p.  19. 


BALANCE 


ACCOUNT. 


Dec. 


31 1  Am't  due  by  Martin     f. 
//        //      Jas.  Carter 
//        1/      B.  Evans 
Cash  in  hand 
Mdse.  in  hand 
Bills  Receivable     7365. 


9 
4 
271 
3634 
3363 
^_  Jl 
7365 


What  does  the  Dr.  side  of  this  account  represent? 

How  is  the  present  net  capital  found? 

Where  is  the  list  of  debts  owing  by  the  concern,  and  what 

do  they  amount  to? 
What  is  the  partners'  present  joint  capital? 
What  portion  of  this  §4000  belongs  to  each  partner? 
How  do  we  ascertain  the  amounts  they  have  paid  in  and 

drawn  out? 
How  do  we  ascertain  if  our  operations  are  all  correct? 
What  is  the  reason  of  this  ? 


Dec. 


31 


Bal.  due  W.  Hay 

'/  T.P.Cope&Sons 
//  on  our  notes  3365. 
//  P.  Duff,  net  cap'l 
//    "^V.  Gordon,  do. 


2 

800 

// 

2500 

3 

65 

1 

2500 

// 

1500 

7365 



1.  A  complete  inventory  of  all  the  effects  of  the  firm. 

2.  By  deducting  what  they  owe  from  the  amount  of  their 

property— see  the  small  figures  in  the  margin  above. 

3.  The  three  first  entries  on  the  credit  side,  amounting  to 


4.  This  leaves  the  present  net  joint  capital  $4000. 

5.  That  depends  upon  the  amounts  which  they  have  paid  in 

and  withdrawn. 

6.  This  can  only  be  known  by  their  accounts. 

7.  If  the  operations  are  all  correct,  the  balances  due  them  or 

their  accounts  must,  as  above,  exactly  close  this  account. 

8.  The  balances  due  to  other  persons  and  the-  balances  duo 

the  proprietor  or  proprietors  of  a  concern  must  exactly 
use  up  all  its  efifects,  neither  more  nor  less 


17 


SINGLE  ENTEY  BOOK-KEEPING. 


CONCLUDING  REMARKS  UPON  THE  LEDGER. 

It  may  be  necessary  to  state  that  the  object  for  closing  the  Ledger  *may  be:  1st,  To 
ascertain  and  record  a  division  of  the  gain  or  loss  between  the  partners ;  or,  2d,  To  prepare 
the  books  for  a  partner  to  come  in ;  or,  3d,  To  prepare  for  transferring  the  contents  of  the 
old  Ledger  to  a  new  one ;  or,  4th,  For  transforming  the  Single  Entry  Ledger  into  a  Double 
Entry  one,  or  transferring  the  Accounts  to  a  new  Double  Entry  Ledger. 

In  closing  the  Ledger,  every  Account  is  made  even  by  a  Balance  Entry  at  the  lesser  side, 
of  the  amount  requisite  to  make  it  equal  to  the  other  side.  These  balance  entries  all  repre- 
sent '^either  effects  or  liabilities  of  the  concern,  and  are  all  transferred  as  fast  as  the  Ac- 
counts are  closed,  to  the  Balance  Account  ^for  the  purpose  of  exhibiting  the  amount  total 
of  each,  and  thereby  to  ascertain  what  the  concern  is  at  present  worth.  There  is  no  way 
of  knowing  this  but  by  making  up  one  list  of  every  thing  we  possess  and  another  list  of 
every  thing  we  owe.  Now,  this  leads  us  to  the  most  simple  and  rational  explanation  of  the 
Balance  Account;  for  the  Dr.  side  is  simply  this  list  of  our  effects  and  the  credit  side  the 
list  of  our  Liabilities.  The  Difference,  if  the  Dr.  side  be  the  largest,  ^  is  what  we  are  now 
worth.     If  the  Cr.  side  be  the  largest,  ^the  difference  is  what  we  are  insolvent. 

The  closing  entries  of  the  Ledger  need  not  appear  on  the  Day  Book.  They  may  all  be 
made  upon  the  face  of  the  Ledger.  They  ought,  however,  both  letters  and  figures,  to  be  in 
red  ink.  All  transfers  from  one  folio  to  another  on  the  Ledger  should  also  be  noted /o/.  or 
/o//o,^  to  distinguish  the  pages  from  those  which  refer  to  the  Day  Book.  But  the  Ac- 
countant must  avoid  the  practice  of  making  any  other  entries  upon  the  Ledger  without  an 
original  entry  with  full  particulars  upon  the  Day  Book, 

If  an  entry  affecting  a  personal  Account  cannot  be  found  upon  the  Day  Book,  its  correct- 
ness may  be  questioned,  and  in  case  of  litigation  it  is  liable  to  be  rejected  altogether. — See 
Note  2,  page  14,  and  Note  2,  page  25. 

The  statement  at  the  foot  of  Day  Book,  p.  4,  will  always  give  the  correct  gain  or  Icsu, 
provided  it  includes  all  the  effects  and  liabilities.     The  rule  is — 

All  debits  are  effects;   all  credits  are  liabilities. 

If  the  amount  of  effects  exceeds  that  of  the  liabilities,  the  surplus  is  gain,  passing  to 
credit  of  the  Stock  account,  or  to  the  credit  of  the  partners.  If  the  liabilities  exceed  the 
effects,  the  deficiency  is  loss,  and  passes  to  the  debit  of  Stock,  or  the  partners'  accounts  if 
the  business  belongs  to  a  firm. 

1.  Wliat  are  the  objects  for  closing  the  Ledger? 

2.  What  do  all  Balance  Entries  represent? 

;i  Wliat  are  they  all  transferred  to  the  Balance  Account  for? 

4.  If  the  Dr.  side  of  the  Balance  Account  be  the  largest,  what  does  the  difference  between  its  sides  represent  ? 

5.  What  if  the  Cr.  side  be  the  largest? 

6.  Why  must  the  transfers  on  the  face  of  the  Ledger  be  noted  folio? 

18 


SINGLE   ENTRY  BOOK-KEEPING. 


It  has  already  been  explained — see  Cash  Account,  Note  1,  and  Merchandise  Account, 
Note  2 — that  these  and  the  other  property  accounts  were  not  opened  until  we  were  closing 
the  Ledger.  They  were  then  opened  for  the  purpose  of  recording  the  different  species  of 
property  the  firm  possessed  when  the  dividend  was  made.  If  the  books  are  re-opened  by 
Single  Entry  these  accounts  remain  closed }  but  if  they  re-open  by  Double  Entry  their 
balances  as  well  as  all  the  others  are  brought  down.  But  whether  the  books  are  afterwards 
to  be  kept  by  Single  or  Double  Entry,  no  dividend  ought  to  be  made  between  the  partners 
without  a  record  of  all  their  effects  and  liabilities,  and  that  record  and  Balance  Account 
ought  always  to  be  in  the  Ledger,  or  in  a  book  for  the  purpose,  not  on  loose  sheets  of  paper, 
as  is  the  practice  with  many  business  people.  As  the  Ledger  now  stands,  if  you  desire  to 
re-open  it  by  Single  Entry,  you  have  only  to  bring^  all  the  balances  of  the  personal  accounts 
down  as  we  have  done  with  Hay's  account^ — Ledger  folio  2 — leaving  only  the  Cash,  Mer- 
chandise, and  two  Bill  Accounts  on  folio  3  closed.  If  you  desire  to  open  the  same  accounts 
in  a  new  Single  Entry  Ledger,  leave  them  all  closed  upon  the  old  Ledger,  and  transfer 
every  account  under  date  of  the  old  Balance  Account,  to  the  new  Ledger,  entering  "  Balance 
from  Ledger  A  (or  B)  folio" — giving  the  folio  of  the  old  Ledger. 

If  you  desire  to  re-open  by  Double  Entry  in  the  old  Ledger,  bring  down'^  the  balances  of 
the  Cash,  Merchandise,  and  the  two  Bill  Accounts,  with  all  the  balances  of  the  personal 
accounts,  and  your  Ledger  is  open  by  Double  Entry.  A  glance  at  the  Balance  Account 
proves  this,  for  there  we  see  every  debit  and  credit  that  we  have  brought  down  into  new 
account,  and  they  being  equal  in  amount  87,365,  our  basis  for  a  Double  Entry  Ledger  is  as 
complete  as  if  it  had  been  kept  upon  that  principle  from  the  beginning. 

If  you  wish  to  transfer  the  contents  of  the  old  Balance  Account  to  a  new  Double  Entry 
Ledger,  it  can  be  done  direct  from  the  Balance  Account  in  the  old  Ledger  to  the  respective 
accounts  in  the  new  Ledger,  giving  reference  to  the  folio  of  each  account  in  the  old  Ledger 
as  above  directed  in  transferring  to  the  Single  Entry  Ledger.  Those  who  prefer  passing 
the  transaction  through  the  Journal  will  make  the  following  entry : — 

Sundries,  Dr.     To  Sundries,  87365. 

Robert  Martin,  bal.  per  Ledger  A.  folio  1, 
James  Cartor,  do.  do.  2, 

Robert  Evans,  do.  do.  2, 

Cash  in  hand,  do.  do.  3, 

•    Mdse.     do.  do.  do.  3, 

Bills  Receivable  in  hand,         do.  3,     . 

To  William  Hay,  for  bal.  due  him,  2, 

//    T.  P.  Cope  &  Sons,     do.  2,     . 

//    Bills  Payable,  bal.  due  on  our  Notes.  3, 

//    P.  Duff,  for  his  Net  Capital,  '  1,     , 

"    W.  Gordon,  do.  1,  . 

When  this  entry  is  posted  into  the  new  Ledger,  the  transfer  to  it  is  completed.  The 
learner  will  not  expect  to  understand  what  we  have  said  here- in  reference  to  re-opening  his 
Ledger  by  Double  Entry  until  he  has  acquired  a  knowledge  of  that  method  in  the  next 
Chapter.  He  will  then  refer  back  to  this  matter,  which  could  only  be  explained  here  in 
connection  with  the  Single  Entry  Ledger. 

He  will  also  refer  to  our  directions  for  correcting  errors  in  the  next  Chapter,  p.  98. 

1.  If  the  Ledger  is  re-opened  by  Single  Entry,  wliat  balances  are  to  be  brought  down  ? 

2.  What  balances  do  you  bring  down  to  re-open  by  Double  Entry? 

19 


89.50 

4.50 

271.25 

3,634.75 

.     3.363.25 

81.75 

8800 

2,500 

65 

2,500 

1,500 

SINGLE  ENTEY  BOOK-KEEPING. 


EXERCISES  IN  MAKING  OUT  ACCOUNTS,  INVOICES,  &c.  IN  CONNECTION 
WITH  THE  PRECEDING  SET. 


(1.)     Form  of  an  Account. — See  J.  Wood's  Account,  Ledger  folio  1. 

Mr.  James  Wood, 

To  Duff  &  Gordon. 


Dr. 


1866 

Sept. 

1 

10 

Oct. 

5 

20 

1866. 

Sept. 

10 

Oct. 

5 

For  bal.  due  P.  Duff  on  old  % 
II     Paid  your  order  in  favor  of  John  Toole 
//     1  pr.  Boots,  f  6.     Hat,  $5 
//     Paid  your  order  in  favor  of  J.  Pine 


Crs. 


For  your  bill  of  carpenter  work       .         ,         .         .    <     . 
//     our  order  on  you  in  favor  of  Wm.  Hay 

Bal.  due  Duff  &  Gordon 
New  York,  1st  Nov.  1866. 


$105. 
50. 


200 
12 
11 

8 


231 
155 


Note. — Accounts  current  are  always  drawn  from  the  Ledger,  referring  by  the  dates  to 
the  Day  Book  when  particulars  are  wanted.  See  that  the  account  and  the  Ledger  balance 
alike,  and  as  soon  as  Wood  admits  the  correctness  of  the  account,  you  must  close  his  ac- 
count on  the  Ledger,  as  we  have  done,  and  bring  the  balance  down,  requesting  him  to  make 
his  books  also  conform  to  the  settlement.  Many  persons  keep  their  books  in  such  a  slovenly 
«ianner  that  they  never  show  their  settlements;  in  consequence  of  which,  they  are  per- 
petually pestering  their  neighbors  in  business  for  statements  of  old  settled  accounts.  Atten- 
tion to  our  directions  in  this  matter  will  save  trouble  to  both  parties. 

r2.)     Form  of  a  Bill  of  Parcels. — See  Day  Book,  p.  2.     October  10. 

Mr.  James  Carter, 

BoT.  OF  Duff  &  Gordon. 


1  Fine  Black  Dress  Coat    . 

1  Full  Circle  Cloak,  trimmed  with  velvet 

Received  cash  on  account 

New  York,  10th  Oct.  1866. 


Balance  due 


28 
45 


73 

50 


23 


(3.)     Form  op  an  Invoice. — See  Day  Book,  p.  3.     November  20. 

Mr.  Robert  Evans, 
'Terms,  net  cash  in  4  months.)  BoT.  of  Duff  &  Gordon. 


12  pair  strong  Waterproof  Boots    . 
24    II     fine  u 

24    II     Boys'  Shoes 

Packing  Case  and  Cartage 

New  York,  Nov.  20,  1866. 


@$8. 
@  6. 
(a),    1.25 


96 

144 

30 

1 


271 


25 


Before  forwarding  this  invoice,  compare  it  carefully  in  every  particular  with  your  Day 
Book. 

20 


SINGLE  ENTRY  BOOK-KEEPING, 


MERCANTILE   TERMS   AND   ABBREVIATIONS   USED   IN   TBIS   WORK. 


Account   current,    a   running   account, 


em- 


bracing all  transactions  from  one  date 

to  another. 
Account  sales,  an  account  of  goods  sold  on 

consignment. 
Amt.,  for  amount. 
Acct.,  for  account. 
@,  for  at. 
Bal.,  for  balance. 
Bbls.,  for  barrels. 

B.  B.,  for  Bill  Book. 

Bottomry  Bond,  a  mortgage  or  lien  upon  a 
vessel 

C.  B.,  for  Cash  Book. 
Co.,  for  Company. 

C.  S.  B.,  for  Commission  Sales  Book. 

Cr.,  for  Credit. 

Closing  an  account,  to  make  it  even. 

Closing  lines,  the  lines  which  separate  the 
old  from  the  new  account. 

Counter  Entry,  an  entry  made  to  balance  one 
on  the  opposite  side. 

Counter  Error,  an  error  balanced  by  another 
one  on  the  opposite  side. 

Counter  Order,  to  recall  an  order. 

Dr.,  for  Debtor. 

Do.,  or  ditto,  for  the  same. 

Dft.,  for  draft. 

Ds.,  for  days. 

Defalcation,  deficit,  diminishing  or  cutting  off. 

Disct.,  discount,  a  sum  or  rate  per  cent,  de- 
ducted from  the  principal  amount. 

Doz.,  for  dozen. 

Dishonored,  when  a  note  or  bill  remains  un- 
accepted or  unpaid. 

Del  Credere^  an  Italian  mercantile  term  sig- 
nifying guarantee. 

Days  of  grace  the  time  allowed  by  law  and 
custom  to  pay  a  note  after  it  is  due. 

Dividend,  the  profit  to  be  divided. 

Drawer,  the  maker  of  a  draft. 

Drawee,  the  person  upon  whom  it  is  drawn. 

E.  E.,  for  errors  excepted. 

E.  and  0.  E.,  for  errors  and  omissions  ex- 
cepted. 

Exch.,  for  Exchange. 

Endorse,  to  write  your  name  on  the  back. 

Full  extend,  to  extend  figures  into  the  money 
columns. 

Footing  an  account,  to  add  it  up. 

Folios,  the  pages  of  the  Ledger. 

Gal.,  for  Gallon. 

Hhd.,  for  Hogshead. 


Honor  a  draft,  to  accept  it.  * 

I.  B.,  for  Invoice  Book. 

Inventory,  a  list  of  goods  or  debts. 

Insolvent,  not  having  sufficient  effects  to  pay 
one's  debts. 

£,  for  pound  sterling. 

Lighterage,  a  charge  for  conveying  goods  to 
a  vessel  in  the  harbor. 

Mos.,  for  Months. 

Mdse.,  for  Merchandise. 

Maturity,  the  day  upon  which  a  note  or  bill 
is  payable. 

Mart,  a  place  for  public  trade. 

N.  A.,  a  new  account. 

N.  P.,  net  proceeds,  the  amount  remaining 
after  all  charges  are  deducted. 

No.,  for  number 

N.  G.,  net  gain,  the  gain  remaining  after  all 
losses  are  deducted. 

N.  C,  net  capital,  the  capital,  clear  of  all 
debts. 

N.  L,,  net  loss,  the  loss  above  all  gains. 

0.  A.,  old  account. 

Per  Ot.,  for  per  cent,,  as  5  Per  Ct.  * 

Ps.,  for  pieces. 

P.,  for  per  or  by. 

Prox.,  for  proximo,  next  month. 

P.  B.  P.,  for  Bill  of  Parcels. 

Pd.,  for  paid. 

Prem.,  for  premium,  an  advance  upon  the 
face  of  the  Bill. 

Par,  the  face  of  the  Bill. 

Protecting,  accepting  or  taking  up  a  Bill. 

Policy,  the  contract  with  an  Insurance  Office. 

Protest,  legal  notice  of  the  non-payment  of  a 
note  or  bill;  which  notice  holds  the 
endorsers  liable  for  its  payment. 

Rec'd,  for  Received. 

Renewal  of  a  Note,  extending  its  time  upon 
a  new  Note. 

Re-consign,  to  send  our  employer's  consign- 
ment to  another  market,  for  sale. 

Solvent,  able  to  pay  debts. 

Short  extend,  to  extend  figures  to  the  left  of 
the  money  columns. 

S.  B.,  Sale  Book. 

Stg.,  Sterling. 

Signature,  a  person's  name  in  his  own  hand- 
writing. 

Sgt.,  sight. 

Ulto.,  ultimo,  last  month. 

Yds.,  yards. 


21 


DOUBLE  ENTRY  BOOK-KEEPING. 


INTRODUCTORY    SET. 


PRELIMINAKY    REMARKS. 

Having  in  the  last  Chapter  explained  Single  Entry  Books,  we  have  now  to  treat  of  the 
Bcience  upon  the  Double  Entry  principle.  We  purpose  to  introduce  it  as  if  the  learner 
had  no  previous  knowledge  of  the  subject.  For.  such  persons  we  have  prepared  the  follow- 
ing Introductory  Set. 

The  purpose  of  this  set  is  to  explain  the  initial  difficulties  of  the  science.  We  have 
found  by  experience  that  it  is  difficult  to  make  a  pupil,  who  has  no  previous  knowledge  of 
the  subject,  understand  the  language  of  the  Journal  until  he  is  made  acquainted  with  the 
nature  and  disposition  of  the  accounts  in  the  Ledger.  How,  for  instance,  can  we  explain 
to  a  beginner  the  meaning  of  such  expressions  as  "Cash  to  Sundries,"  or  ''>5undries  to 
Cash,"  but  by  taking  him  to  the  Ledger  and  there  explaining  to  him  the  Cash  Account 
and  the  manner  and  object  for  keeping  it  ?  Until  he  has  the  Ledger  explained  to  him  in 
some  way,  the  language  of  the  Journal  must  remain  unintelligible  to  him :  and  to  this  may 
be  ascribed  the  difficulty  and  ill  success  in  teaching  Book-keeping  from  some  of  the  most 
popular  treatises  in  use ;  in  which,  after  bewildering  the  pupil  with  Rules  and  Lectures 
upon  Journalizing,  they  conclude  with  what  ought  to  be  first  explained, — the  Ledger. 

We  here  introduce  our  pupils  at  once  to  that  book,  by  first  defining  its  nature  and  use, 
and  then  by  posting  a  few  entries  into  it,  sufficient  to  afford  an  explanation  of  the  balance 
sheet.  He  then  brings  it  to  a  close  and  determines  the  gain  or  loss  upon  these  trans- 
actions,— an  operation  that  can  hardly  fail  to  awaken  his  interest  and  create  a  taste  for  the 
science. 

He  next  brings  down  the  balances,  and,  after  recording  a  few  more  entries,  closes  his 
Ledger  as  before,  ascertains  the  increase  or  decrease  of  capital,  and  prepares  for  transfer- 
ring his  balances  to  a  new  set  of  books.  This  already  affords  him  a  commanding  view  of 
the  whole  subject;  particularly  of  that  part  of  the  process  which  is  so  seldom  understood 
by  young  accountants, — viz.  transferring  the  contents  of  old  books  to  new  ones. 

The  light  thrown  upon  the  subsequent  parts  of  the  process,  by  this  early  acquaintance 
with  the  nature  and  purposes  of  the  different  accounts  in  the  Ledger,  will  render  the  pupil's 
progress  less  difficult  and  perplexing  and  more  effective. 

The  teacher  will  not  omit  to  require  answers  to  all  the  questions  given  at  the  foot  of  each 
page,  for  the  pupil's  examination  as  he  proceeds. 

22 


SET  I.— DOUBLE   ENTRY  BOOK-KEEPING. 


DEFINITION  OF  THE  LEDGER. 

All  the  other  books  used  in  business  may  be  considered  as  tributaries  to  this  Book. 
Every  transaction  affecting  our  affairs  must  come  to  some  accounts  in  the  Ledger  for  final 
adjustment.  It  therefore  follows  that  a  distinct  knowledge  of  the  nature  of  the  accounts  in 
it  and  the  manner  of  conducting  them  is  indispensable  to  enable  a  person  to  record  an  entry 
intelligibly  upon  the  other  Books. 

In  the  infancy  of  commerce,^  the  Ledger  was  the  only  book  used;  and  where  the  trans- 
actions are  few,  it  still  may  be  made  to  answer  the  same  purpose,  by  making  the  entries  on 
it  at  once,  without  the  intervention  of  any  other  book.  Thus,  when  a  sum  is  to  be  entered, 
by  the  index  you  find  the  account  headed,  in  a  large  distinct  hand,  with  the  name  of  the 
person  with  whom  the  transaction  has  occurred,  and  at  the  proper  side  we  enter  the  date, 
particulars,  and  amount. 

This  book^  is  generally  kept  in  folios  of  two  pages  to  a  folio.  Of  late,  however,  each 
page  is  generally  made  to  serve  for  a  folio  by  a  dividing  line  down  the  middle.  On  the  left 
side  of  each  folio  are  the  date  columns,  and  on  the  right  those  for  the  money.  ^  One  folio 
is  allowed  to  each  person's  account,  the  left  side  being  assigned  to  the  debits,*  which  means 
your  account  against  the  person,  and  the  right  side  receives  the  credits  or  the  person's 
account  against  you.  Thus,  your  account  against  him  and  his  account  against  you  are 
brought  together  under  one  head,  yet  arranged  on  opposite  sides,  in  such  a  manner  that, 
if  once  correctly  placed,  no  doubt  can  afterwards  arise  as  to  what  sums  belong  to  his  ac- 
count or  to  your  account.  When  either  party  pays  the  other  in  full,^  after  the  payment  is 
entered,  the  account  must  be  closed.  *  When  the  two  sides  of  an  account  are  found  to  be 
equal,  place  the  sum  at  the  foot  of  each  and  draw  ink  lines  below  them  in  such  a  way  as  to 
keep  the  figures  distinctly  separated  from  those  of  the  transactions  that  may  follow  after  the 
settlement,  and  which  may  be  kept  under  the  same  head — see  our  Cash  and  Merchandise 
accounts  in  the  Introductory  Ledger,  pages  33  and  34. 

In  addition  to  persons'  accounts,  in  Double  Entry  Books,''  we  also  keep  accounts  of  every 
kind  of  PROPERTY  we  own  and  deal  in.  This  is  done  under  different  heads  precisely  as  we 
have  just  described  in  personal  accounts;*  making  each  property  account  Dr.  for  what  we 
pay  for  it,  that  is  what  it  gets  in  debt  to  us ;  and  Credit  for  what  it  brings  us  in  }  that  is 
what  it  pays  us  or  gets  out  of  our  debt.  In  fact  we  may  say  that  such  accounts  are  per- 
sonified and  are  dealt  with  in  all  respects  like  persons.  Thus,  if  you  own  a  house,  ship,  or 
steamer,  let  each  have  an  account  in  your  Ledger.  'This  account  is  debited  for  the  cost  or 
value  of  the  property j^**  and  credited  for  the  freight  or  rent  it  has  brought  you  in,  and  also 
for  the  proceeds  of  the  sales  if  you  have  sold.  Then  an  inspection  of  the  account  will 
show  what  we  have  made  or  lost  by  that  piece  of  property.  Thus,  if  the  cost"  (the  Dr.  side) 
be  more  than  what  it  has  brought  us  in  (the  Cr.  side),  then  we  have  lost  by  it.  But  if  the 
Credit  side  be  the  largest,  then  we  have  gained  by  it.  In  the  same  manner  the  gain  or.  loss 
is  determined  upon  the  purchases  and  sales  of  Merchandise  or  any  other  property. — See 
Merchandise  Account,  1st  Set. 

1.  What  -was  the  first  book  used  in  Commerce?  2.  How  is  the  Ledger  generally  kept?  3.  How  many  folios  for  each  account, 
and  which  side  is  used  for  the  debit  and  which  for  the  credit  side?  4.  What  do  you  mean  by  the  debits  and  credits  of  an  ac- 
count? 5.  When  either  party  pays  the  other  off,  what  is  to  be  done  with  the  account?  6.  What  do  you  mean  by  closing  an 
account?  7.  What  other  accounts  besides  personal  accounts  are  kept  in  Double  Entry  Books?  8.  How  are  property  accounts 
kept?  9.  To  which  side  of  the  property  account  do  you  place  its  cost  or  value?  10.  What  do  you  place  to  the  credit  side  of  a 
property  account?    11.  How  do  you  determine  what  you  have  made  or  lost  by  a  property  account? 

23 


SET  I— DOUBLE  ENTRY  LEDGER  AND  DAY  BOOK. 

The  third  class  of  accounts^  kept  in  Double  Entry  Books  may  be  called  Profit  and  Loss 
Accounts,  as  they  receive  no  entries  but  gains  and  losses.  ^They  are  kept  for  the  purpose 
of  recording  all  expenses  and  losses,  and  all  gains.  They  may  be  kept  all  under  one  head — 
Profit  and  Loss;  which  is  kept  like  all  other  accounts  with  a  Dr.  and  Cr.  side.  ^Thc 
Dr.  side  receives  all  entries  of  Expense  and  Loss,  and  the  credit  side  all  entries  of  gain. 
*  But  where  the  gains  and  losses  are  thus  thrown  together  in  one  account,  we  deprive  our- 
selves of  the  means  of  determining  the  gain  or  loss  arising  out  of  particular  sources.  But 
if  we  subdivide  this  account  and  open  branches  for  Interest,  Commissions,  Expenses,  &c., 
and  debit  each  of  these  branches  for  all  we  lose  upon  it,  and  credit  it  for  all  we  gain  by  it, 
it  is  obvious  that  each  of  these  accounts  will  at  any  time  present  an  important  and  interest- 
ing piece  of  information.  And  the  longer  we  keep  them,  the '  more  interesting  and  in- 
structive they  become,  as  they  can  be  made  to  present  a  tabular  view  of  their  respective 
results  for  comparison  at  different  periods  of  our  business. 

Presuming  that  our  attentive  learner  has  now  obtained  some  idea  of  the  Ledger,  we  will 
next  endeavor  to  explain  the 

DAY  BOOK. 

This  book  is  by  some  called  The  Blotter,  and  it  is  not  an  inappropriate  name  for  some 
people's  Day  Books.  But  for  obvious  reasons,  scratching  out,  scoring  or  blotting  entries 
upon  this  book  ought  to  be  avoided.  If  an  entry  be  made  wrong,  it  ought  to  be  corrected, 
as  we  shall  direct  when  speaking  of  the  correction  of  errors,  page  98,  Note  11. 

This  book  is  ruled  in  single  pages,  never  in  folios  like  the  Ledger.  There  is  a  marginal 
column  on  the  left  and  money  columns  on  the  right. — See  our  Day  Book  in  the  following 
Set,  page  28. 

This  book  becomes  necessary  as  soon  as  the  business  transactions  become  so  numerous  as 
to  render  it  inconvenient  to  turn  to  the  proper  account  in  the  Ledger  and  to  record  them 
there  separately.  ^  On  the  Day  Book  we  enter  them  down  one  after  another  as  they  occur, 
like  so  many  different  memorandums.  We  reserve  no  spare  space  for  each  man's  account 
here  as  we  do  in  the  Ledger.  We  have,  however,  to  take  care  that  every  entry  embrace/* 
the  following  particulars.  *  1st,  the  date ;  2d,  the  person  or  account ;  3d,  what  you  have 
bought  or  sold,  paid  or  received;  4th,  the  terms  of  payment;  5th,  the  articles,  quantities, 
prices,  and' amounts.  By  inspecting  any  of  our  Day  Books  it  will  be  seen  that  entries  for 
different  persons'  accounts  are  all  intermixed  upon  the  same  page ;  but  are  separated  by  ink 
lines  in  such  a  manner  that  there  is  no  difficulty  in  distinguishing  what  belongs  to  each 
person's  entry. 

At  our  first  leisure  time  we  post  the  contents  of  the  Day  Book  into  the  Ledger.  '  Post- 
ing signifies  the  process  of  transferring  each  Day  Book  entry  to  the  proper  side  of  its  proper 
account  in  the  Ledger,  in  the  same  order  of  date  as  they  occurred  upon  the  Day  Book.  In 
order  to  show  distinctly  how  far  the  posting  has  proceeded,  when  the  post  or  transfer  is 
made  to  the  Ledger,^  the  entry  is  marked  oft'  or  the  Ledger  page  inserted  in  the  margin  of 
the  .Day  Book,  as  we  have  done  upon  the  first  page  of  the  following  Day  Book. 

The  Teacoer's  Examination. — 1.  What  is  the  third  class  of  accounts  called,  and  what  kind  of  entries  do  they  record  ? 
2.  What  is  the  purpose  of  keeping  them  ?  3.  What  do  we  place  to  the  debit  and  credit  side  of  the  Profit  and  Loss  accounts  ? 
4.  What  objection  is  there  to  keeping  all  accounts  of  loss  and  gain  under  the  Profit  and  Loss  accofints?  5.  IIow  are  entries 
made  in  the  Day  Book?  6.  What  particulars  should  every  Day  Book  Entry  embrace?  7.  What  is  meant  by  posting?  8.  How 
do  we  slow  upon  the  Day  Book  how  far  the  posting  has  proceeded? 

24 


SET   I.— DOUBLE   ENTRY. 

When  a  Day  Book  is  kept  it  is  called  the  Book  of  original  Entry,  ^and  will  always  be 
referred  to  in  any  case  of  doubt  or  dispute  about  the  correctness  of  any  entry  upon  the 
Ledger.  It  then  becomes  a  matter  of  importance  to  have  every  entry  made  upon  the  Day 
Book^  in  such  a  way  as  to  explain  itself,  and  also  that  every  entry  affecting  other  persons' 
accounts  should  originate'  upon  this  book.  The  practice  of  making  some  entries  originate 
upon  the  Ledger  where  a  Day  Book  is  kept,  often  leads  to  perplexing  consequences.  The 
original  entry  ought  also  to  be  made  *by  the  clerk  with  whom  the  transaction  occurred. 
The  next  Book  requiring  explanation  is  the 


JOURNAL. 

This  Book^  becomes  necessary  as  soon  as  the  nature  and  extent  of  the  business  introduces 
many  long  and  intricate  entries  upoA  the  Day  Book.  When  one  Day  Book  entry  affects  a 
number  of  accounts  in  the  Ledger,  posting  such  entries  direct  from,  the  Day  Book  becomes 
difficult  and  liable  to  error.  *The  purpose  of  the  Journal  is  to  arrange  all  the  transactions 
from  the  Day  Book  in  such  a  manner  that  each  Ledger  title  shall  be  affixed  to  its  respective 
Debit  or  Credit,  and  thus  render  the  posting  into  the  Ledger  less  liable  to  omissions  and 
errors.  The  transactions  of  a  very  extensive  business  may  be  stated  upon  the  Day  Book  in 
the  Journal  form  in  such  a  manner  as  to  be  posted  without  difficulty  and  without  the  inter- 
vention of  a  Journal.  This,  however,  can  only  be  done  by  those  who  have  learned  to  keep 
the  Journal;  and  a  correct  knowledge  of  the  language  and  principles  of  this  Book  is  an 
important  and  somewhat  difficult  part  of  the  science  of  accounts  to  acquire.  We  embody 
our  instruction  for  making  the  entries  of  this  book  in  rules  upon  the  next  page,  which  are 
immediately  afterwards  put  in  practice  in  the  introductory  Day  Book  and  Journal.  We 
hope  our  attentive  learner  will  now  have  but  little  difficulty  in  answering  his  teacher  the 
foUowinir 


GENERAL   QUESTIONS   ON   THE   PRECEDINa  LESSONS. 

Quest.   1.  When  a  person  buys  of  you  on  credit,  to  which  side  of  his  account  in  the 
Ledger  do  you  place  the  amount? 

2.  If  you  buy  on  credit,  to  which  side  of  the  person's  account  do  you  place  the 

amount? 

3.  If  you  afterwards  pay  him  this  amount? 

4.  How  does  the  account  then  stand  and  what  is  to  be  done  with  it? — See  Note  5, 

p.  23. 

5.  When  you  receive  money,  to  which  side  of  the  Cash  Account  do  you  place  it? 

6.  When  you  pay  money  away  ? 

7.  When  you  buy  Merchandise,  to  which  side  of  the  account  do  you  place  the 

amount? 

8.  When  you  sell  Merchandise? 

9.  If  you  buy  Houses,  Ships,  or  Steamboats? 

10.  If  they  bring  you  in  freight  or  rent,  or  if  you  sell  the  whole  or  part  of  any  of 

them  ? 

11.  If  you  lose  money,  pay  rent,  clerks'  wages,  or  other  expenses,  to  which  side  of 

the  Profit  and  Loss  Account  do  you  place  the  amount? 

12.  If  you  receive  money  for  storage,  or  by  renting  part  of  your  premises,  to  which 

side  of  the  Profit  and  Loss  Account  do  you  place  the  amount? 

The  Teacher's  Examinatiox.— 1.  What  book  is  always  referred  to  in  case  of  dispute  about  the  correctness  of  the  Ledger? 
2.  How  should  an  entry  be  always  made  upon  the  Day  IJook  ?  3.  Where  should  all  entries  affecting  other  persons'  accounts  be 
first  made?  4.  By  whom  ought  an  original  entry  to  be  made?  5,  When  does  the  Journal  become  necessary?  6.  What  is  the 
use  of  the  Journal  ? 

25 


SET  J.— DOUBLE  ENTRY. 


RULES  FOR  JOURNALIZING. 


The  following  rules  must  be  committed  to  memory.  For  the  convenience  of  the  teacher 
wc  give  them  in  the  interrogative  form.  The  learner  will  find  it  useful,  in  exercising  him- 
self, to  cover  the  answers. 


Quest.  1.  What  is  the  general  rule  for 
regulating  the  debits  and 
credits  in  Double  Entry 
Book-keeping? 

2.  "What  is  the  rule  for  opening 
Books? 


3.  When  is  a  personal  account 

debited  ? 

4.  When  is  a  personal  account 

credited  ? 

5.  What  is  the  general  rule  for 

receiving   and    delivering 
property  ? 

6.  Repeat    a    more    particular 

rule  for  debiting  property 
accounts. 


7.  When  are  property  accounts 
always  credited? 


8.  When  is  the  Profit  and  Loss 

Account  to  be  debited  and 
credited  ? 

9.  What  is  a  Bill  Receivable? 
10.  What  is  a  Bill  Payable  ? 


Ans.  1.  The  Debits  and  Credits  arising  out  of 
*every  transaction  must,  in  amount,  be 
equal. 

2.  The  Stock  Account  represents  myself, 
and  must  therefore  be  debited  for 
what  I  now  owe  and  credited  for  what 


I 


now  possess. 


3.  AVhen  he  gets  into  my  debt,  or  I  get  out 

of  his  debt,  he  is  Dr.  for  the  amount. 

4.  When  I  get  into  his  debt,  or  he  gets  out 

of  my  debt,  he  is  Cr.  for  the  amount. 

5.  The  thing  received  is  Dr.  to  the  thing 

delivered.! 

6.  When  property  becomes  mine,  it  is  Dr. 

for  its  cost  or  value ;  and  when  it  costs 
me  any  thing  afterwards,  it  is  Dr.  for 
that  cost. 

7.  When  property  brings  me  in  any  thing. 

it  is  credited  for  the  amount,  and 
when  it  ceases  to  be  mine  it  is  cred- 
ited for  its  value  or  what  I  receive 
for  it. 

8.  Always  debit  loss  and  credit  gain. 


9.  Any  obligation  on  paper  which  1 
acrainst  others. 


hold 


10.  The  same  description  of  obligations  held 
by  others  against  me. 


*  The  term  Stock  is  universally  used  by  Accountants  for  this  purpose;  but  it  is  rather  an  ill-chosen  title,  as  young  Book- 
keepers are  apt  to  confound  it  with  the  Merchandise  Account.  The  term  Capital  or  some  other  title  that  would  better 
express  the  nature  of  the  account  would  be  more  appropriate.  The  author  has  not,  however,  thought  proper  to  change 
the  title  of  the  account,  it  being  his  object  to  introduce  all  his  improvements  by  conflicting  as  little  as  possible  with  esta- 
blished usages. 

+  Or,  the  receiving  account  Dr.  to  the  imparting  account. 

26 


SET   I.— DOUBLE   ENTRY. 

THE  DAY  BOOK  AND  JOURNAL. 


INTRODUCTORY   RE3IAIIKS. 

'.  These  two  Books  are  here  bound  together.  This  is  done,  both  here  and  with  the 
principal  set,  for  the  mutual  convenience  of  the  learner  and  the  teacher;  but  they 
will  recollect  that  these  Books  are  never  kept  so  in  business.  There  they  are  always 
bound  separately. 

DIRECTIONS   TO   TEACHERS   AND   LEARNERS. 

2.  After  committing  to  memory  the  preceding  Rules  for  Journalizing  you  will  transcribe 
into  your  Day  Book  the  first  page  of  the  one  following.  Then  study  the  Journal 
entries,  applying  the  preceding  rules  for  that  purpose,  aad  refer  from  each  entry  in  the 
Journal  to  its  final  disposition  in  the  Ledger.  Endeavor  to  understand  the  nature  of 
all  the  Accounts  there  before  you  go  farther,  for  it  is  that  book  that  regulates  the 
Journal.  Therefore  the  first  thing  to  be  known  is  what  accounts  in  the  Ledger  are 
entitled  to  debits  and  credits  out  of  the  transaction.  Afterwards  you  can  frame  your 
Journal  entry  without  difficulty. 

'^.  The  teacher  will  then  take  the  printed  Journal  and  hear  the  class,  each  pupil  in  turn, 
give  the  Journal  entries  verbally  from  their  own  manuscript  Day  Books,  requiring 
their  answers  at  the  same  time  to  the  interrogatories  at  the  bottom  of  the  page. 

4.  When  they  can  do  this  satisfactorily,  they  are  prepared  to  write  the  Journal.     This 

must  first  be  done  from  their  own  manuscript  Day  Book,  without  any  farther  assistance 
from  the  printed  Journal,  upon  slates  or  loose  sheets  of  paper  ruled  to  the  Journal 
pattern,  taking  care  to  extend  the  debit  and  credit  amounts  in  their  proper  columns 
and  upon  the  same  line  with  their  respective  accounts.  The  teacher  should  require 
each  pupil  to  repeat  this  operation  upon  the  slate  or  waste  paper  until  he  can  write  the 
Journal  correctly  without  farther  assistance  from  his  teacher.  His  printed  book  ought 
to  be  laid  aside  during  this  operation.  After  this  they  will  have  no  difficulty  in  Jour- 
nalizing their  Day  Book  direct  into  their  Journal,  in  all  respects  as  they  will  afterwards 
have  it  to  ^o  in  business.  When  this  is  done  with  the  first  page  of  the  Day  Book, 
they  will  open  their  Ledgers;  directions  for  which  will  be  found  preceding  the  Intro- 
ductory Ledger. — p.  32. 

5.  After  posting  the  first  page  of  the  Journal  and  Balancing  the  Ledger  according  to  the 

directions,  the  class  will  transcribe  the  next  page  of  the  Day  Book  and  proceed  with 
it  in  all  respects  as  before. 

6.  Teachers  will  observe  that  all  our  directions  are  given  for  instructing  in  classes,  but  they 

at  the  same  time  serve  for  individual  instruction. 

7.  Let  me  caution  all  teachers  against  allowing  their  students  to  make  their  Journals  or 

their  postings  in  the  Ledger  from  the  printed  book.  They  might  as  well  expect  to 
learn  Arithmetic  by  copying  ofi"  the  questions  and  answers,  as  to  acquire  the  art  of 
Book-keeping  by  such  means. 

8  All  transfers  from  one  book  to  another  must  be  carefully  compared  and  check-marked  on 
both  books  thus  |/.  On  the  Ledger  a  small  point  (•)  is  best,  as  it  does  not  deface  the 
page.  No  person  can  keep  his  work  correct  long  without  checking.  When  you  have 
no  figures  for  your  cent  columns  avoid  the  useless  practice  of  filling  them  with  ciphers, 
which  are  in  your  way  when  adding  the  column. 

27 


NEW  YORK,  November  1,  1866. 


^  My  effects,  commencing  business  this  day,  consist  of — 

Cash  in  hand $1000. 

Charles  Page  owes  me  on  his  note  .         .         .     $500. 

R.  Manly  owes  me  on  his  bond  and  mortgage     .         1500.        2000.       3000 

5.  "HI 


Bought  for  Cash  of  William  Hay  Merchandise  per  Invoice       .         .  600 


Sold  James  Carter  for  Cash — 

60  pieces  of  two  Blue  Prints     .         .         .         .       @  $3.         $180. 
70      It      Fancy  Stripes         .         .         •  .         .    //     4.  280. 


10. 


'  Rec'd  Cash  from  R.  Manly  for  his  mortgage  ....     $1500. 
Also  Interest  due  on  the  same  .         .         .         .         .         .         .       90.       1590 


14. 


Bo't  of  A.  Stuart  &  Co.  on  my  note  @  60  days  Merchandise  "^  Invoice  300 


*  Bought  of  Warden  &  Bell  Merchandise  "^  Invoice 
Paid  them  Cash  on  account  of  the  same         ....  200. 


The  balance  to  their  account  @  2  months 

—    25. 


*  Sold  William  Hay— 

5  hhds.  Sugar,  1180,  1220,  1300,  1100,  1200  ==  6000  lbs. 
Tare  10  per  cent,  off       .         .         .         600 

Net  5400  lbs.,  @  5  cts.,     $270. 
120  pieces  Furniture  Prints      ,  .    @  $3.  360.      630. 

Rec'd  Cash  on  account  of  the  same         .         .     '     .         .     330. 

The  balance  to  his  account  @  2  months  . 

—  30.  — 


•  Paid  Cash  for  Store  Rent,  Advertising,  &c. 


Sold  for  Cash  to  J.  Beck  &  Co.  the  remainder  of  my  Merchandise  in  hand 
240  pieces  Merrimac  Prints         .         .         .         .     @  $3.         $720. 
30      w      Furniture      //         .         .         .         .  it     2.  60. 


Paid  Cash  Jennings  &  Co.'s  account  for  Clothing  for  my  private  use 


1.  Stock  must  be  here  credited  for  the  amount  of  my  property  according  to  Rule  2,  and  Cash  and 
Bills  Receivable  are  debited  by  Rule  5,  these  amounts  being  now  received  into  these  books. 

2.  Cash,  the  thing  received,  is  here  debited  for  the  whole  amount;  but  there  being  nothing  delivered 
for  the  $90,  Profit  and  Loss  is  credited  according  to  Rule  8.  Bills  Receivable  can  only  be  credited  for 
the  face  of  the  bill. 

3.  Although  Warden  &  Bell  might  have  been  here  credited  for  the  whole  Invoire,  and  debited  for  the 
payment  upon  it,  yet  the  Journal  entry  we  have  given  is  more  concise  and  equally  correct. 

4.  For  the  reasons  given  in  the  last  note.  Hay  is  here  only  debited  for  the  balance  due  on  this  pur- 
chase. If  he  had  made  tliis  payment  on  a  former  account,  then  it  must  appear  at  his  credit,  and  the 
whole  of  this  invoice  at  his  debit. 

5.  We  have  received  nothing  in  exchange  for  this  cash,  and  there  being  no  pcieon  responsible  to  us 
for  it,  we  must  debit  Profit  and  Loss. 

6.  The  figures  in  the  left  marginal  column  of  the  Journal  are  the  pages  of  the  Ledger,  and  are 
written  as  the  posting  proceeds.  They  serve  as  post  marks  to  show  how  far  that  operation  is  com- 
pleted. 

7.  As  the  Day  Book  entries  are  journalized,  each  is  marked  off  in  the  margin,  as  the  above  two 
first  entries. 

28 


NEW  YORK,  November  1,  1866. 


i  1 
2 
1 


^  Sundries,  Dr.  to  Stock  account 
Cash  account     . 
Bills  Receivable  account'^ 


5. 


Mdse.,  Dr. 
To  Cash 


Cash,  Dr. 
To  Mdse. 


2  Cash,  Dr.  to  Sundries 
To  Bills  Receivable 
n   Profit  &  Loss 


Mdse.,  Dr.     . 
To  Bills  Payable 


'  Mdse.,  Dr.  to  Sundries 
To  Cash    . 
//   Warden  &  Bell 


*  Sundries,  Dr.  to  Mdse. 
Cash     . 
William  Hay     . 


10. 


14. 


25. 


5  Profit  &  Loss,  Dr. 
To  Cash    . 


Cash,  Dr.       . 
To  Mdse.  . 


Profit  &  LosSj  Dr. 
To  Cash    . 


1.  Why  is  Stock  account  credited,  and  Cash  and  Bills  Receivable  account  debited 

for  this  amount? 

2.  Why  is  Cash  here  debited  for  the  whole  amount,  and  Bills  Receivable  credited 

for  only  $1500? 

3.  Why  not  credit  Warden  &  Bell  for  the  whole  Invoice,  and  debit  them  for  the 

payment  ? 

4.  Why  not  debit  Hay  for  the  whole  Invoice,  and  carry  the  payment  to  his  credit 

on  account  ? 

5.  Why  debit  Profit  &  Loss  for  this  amount? 

6.  What  are  the  figures  in  the  left  hand  marginal  column  of  the  Journal,  and 

when  are  they  inserted? 

7.  What  is  done  to  show  how  far  the  Day  Book  is  journalized? 

*  The  learner  will  observe,  that,  although  the  word  account  is  understood  after 
every  Ledger  title,  it  is  never  written.  And  in  a  business  journal  w^e  seldom  write 
the  abbreviation  Dr.  ;  but,  for  the  purposes  of  instruction,  we  deem  it  advisable  to 
retain  it. 

29 


Das. 

CBS. 

1000 

2000 

3000 

600 

• 

600 

460 

460 

1590 

1500 
'     90 

300 

300 

800 

200 
600 

1 

330 
300 

630 

1     . 

150 

150 

780 

780 

130 

1 

130 

NEW  YORK,  December  1,  1866. 


*  Received  by  the  packet  Gladiator,  Pratt,  master,  from  London,  an  Invoice 
of  Prints,  shipped  me  by  R.  Morris,  by  my  order  and  for  my  account, 
amounting,  per  invoice,  to  £450  sterling,  due  31st  inst.       .       2000. 
Paid  freight  and  duty  in  Cash 500. 


10. 


Received  Cash  from  Charles  Page  for  his  note  in  my  favor 

u. 


Sold  James  Bay — ■  ' 

300  pieces  London  Chintz  Muslin,  @  $4     . 
30      //      Cambric  Handkerchiefs,  @  SIO 

Received  Cash  on  account  of  the  same     . 

//         his  note  (a).  3  months  for  the  balance     . 


.  $1200. 
300. 


$1000. 


500.     $1500. 


*  Received  from  the  Executors  of  my  Father's  Estate,  House  and 

Lot  44  Broadway,  valued  at $15000. 

Cash 10000. 


21, 


*  Discounted  for  C.  Banks  his  note  @  1  month  for      $1000. 

If  I,    C.Murray     //  //    9  months  for       1500.        $2500. 


Deduct  33  days'  Interest  on  Banks's  note 


"51)0 


II       Og^o  months'  Interest  on  Murray's  note        68.25  73.75 

Net  proceeds  paid  them  in  Cash      ^i         .         '. 


Bought  of  Charles  Page  Mdse.  per  Invoice 
Paid  him  Cash  on  account     .         . 
*  Gave  him  my  order  on  William  Hay,  payable  in  Mdse 
for  the  balance 

25. 


$2100. 


$2000. 
100. 


Paid  Cash  my  bill  for  boarding  at  the  Astor  House  to  date 

31. 


$2200. 


•  Paid  William  Hay  Cash  on  loan  for  30  days 
Sold  him,  on  account,  3  pieces  best  black  Broadcloth,  viz.. 

No.  1144.  24!,  1004.  22^,  and  909.  23.  =  70  yards,  @  $10        700. 


Gave  Warden  &  Bell  my  order  on  William  Hay,  payable  in  Cash,  for 


Paid  Rents,  Clerks'  Wages,  &c.,  in  Cash  . 


1.  We  debit  Merchandise  for  what  it  costs  to  bring  it  home,  as  well  as  the  purchase  money— recollect 

Rule  6.    Morris  is  only  credited  for  $2000,  because  that  is  all  we  got  in  debt  to  him.    (Rule  4.) 

2.  We  do  not  debit  Day  on  Book  account  for  the  balance  of  his  purchase,  because  we  received  his  note 

for  it.    We  cannot  record  two  claims  for  the  same  sum. 

3.  The  Profit  and  Loss  account  is  only  intended  to  record  our  gains  and  losses  by  business;  and  as  we 

have  not  earned  this  property  by  our  business,  it  would  not  be  proper  to  carry  it  to  that  account, 
although  our  doing  so  would  make  no  difference  in  the  final  closing  of  the  Stock  account. 

4.  The  discount  upon  these  notes  is  a  gain  to  us,  we  therefore  credit  Profit  and  Loss  for  it. 

5.  Hay  must  be  credited  for  this  order,  because  wo  get  in  debt  to  him  for  paying  this  amount  for  us. 

6.  Hay  must  here  be  debited  for  both  the  Cash  and  Merchandise,  because  he  gets  into  our  debt  for  the 

amount — recollect  Rule  3. 

7.  Here  Warden  &  Bell  is  Dr.,  because  we  get  out  of  their  debt  for  that  amount,  and  ILay  is  credited, 

because  we  get  into  his  debt  for  the  same  amount. 

30 


2500 
500 

1500 


25000 


242G 

2100 
50 

2900 
100 
103 


25 


75 


NEW  YORK,  December  1st,  1866. 


*  Mdse.,  Dr.  to  Sundries 

To  K.  Morris     .... 
//   Cash         .... 

====================       10. 

Cash,  Dr 

To  Bills  Keceivable 

===       14. 

*  Sundries,  Dr.  to  Mdse. 
Cash     .         . 

Bills  Eeceivable 

// 

'  Sundries,  Dr.  to  Stock  . 
House  and  Lot  44  Broadway 
Cash 

=       21. 

*  Bills  Receivable,  Dr.  to  Sundries 
To  Cash         .... 

If   Profit  &  Loss 

ff 

*  Mdse.,  Dr.  to  Sundries  . 

To  Cash 

//   William  Hay    . 

-  25. 

Profit  &  Loss,  Dr.' 

To  Cash        .... 

31. 

*  William  Hay,  Dr.  to  Sundries    . 
To  Cash         .... 

//    Mdse.  .         .         .         .         . 

ff 

'  Warden  &  Bell,  Dr. 
To  William  Hay 

If 

Profit  &  Loss,  Dr. 

To  Cash 


1.  Why  is  Merchandise  debited  for  any  more  than  the  amount  for  which  we  credit 

Morris  ? 

2.  Wliy  is  not  Day  debited  for  the  unpaid  balance  of  this  invoice? 

3.  This  amount  being  a  gain,  why  not  credit  Profit  &  Loss  for  it? 

4.  Why  is  Profit  &  Loss  credited  for  this  $73.75,  it  being  a  deduction  from  the 

notes? 

5.  Why  do  we  credit  Hay  for  this  order  ? 

6.  Why  is  Hay  debited  in  this  case? 

7.  Why  debit  Warden  &  Bell  and  credit  Hay  for  this  order? 


DBS. 

2500 


500 


1000 
500 


15000 
10000 


2500 


2100 


50 


2900 


100 


103 


to 


Crs. 

2000 
500 


500 


1500 


25000 


2426 
73 


2000 
100 


25 
75 


50 


2200 
700 


100 


103 


iO 


ON  OPENING  AND  CLOSINU  THE  LEDGER. 

When  the  pupil  has  Journalized  the  first  Day  Book  and  afterwards  carefully  compared 
his  Journal  with  it,  he  will  open  his  Ledger.  In  a  clean  text  hand  write  the  title  of  each 
Account,  giving  it  five  or  six  more  lines  of  space  than  on  the  printed  Ledger.  Insert  the 
abbreviations  Dr.  and  Cr.^  at  the  top  of  the  page  only.  Then  post  the  Journal  into  the 
Ledger.  Before  attempting  this,  it  will  be  well  to  compare  the  entries  from  the  printed 
Journal  to  the  Ledger.  In  expressing  the  entry  upon  the  Ledger,  it  will  be  seen  that  a 
debit  is  always  To  that  Account  which  receives  credit  for  this  sum,  and  the  Cr.  Account 
expresses  the  same  entry  By  the  Account  that  was  made  Dr.  for  the  same  sum.  Where 
several  accounts  are  referred  to,  the  expression  is  either  To  or  By  Sundries.  But  the 
learner  will  acquire  the  process  more  readily  by  seeing  it  done  on  his  printed  Ledger  than 
by  any  other  means.  But  let  the  amount  always  be  first  inserted,  the  date  and  other  par- 
ticulars afterwards.  When  the  Journal  is  posted,^  compare  and  check  every  entry  from  it 
to  the  Ledger,  check-marking  them  thus  -j/  with  a  pencil  on  the  inner  left-hand  marginal 
line  of  the  Journal  and  on  the  double  line  on  the  left  of  the  money  column  on  the  Ledger. 
Then  add  up  all  the  Accounts^  and  take  off  a  Trial  Balance,  both  sides  of  which  must  come 
out  equal. — See  form  at  the  end  of  the  Ledger,  page  36. 

After  studying  the  oral  exercises  under  each  Account  upon  the  Ledger  until  he  can 
answer  them  readily,  the  pupil  is  prepared  to  close  his  Ledger.  Though  this  is  the  most 
difficult  part  of  the  process  of  Book-keeping  to  understand,  I  think  the  following  method 
of  elucidating  it  will  make  the  matter  intelligible. 

By  closing  a  Ledger  we  make  every  Account  upon  the  face  of  it  even.  *The  purpose 
of  this  is  to  dispose  of  all  the  Balances  in  such  a  manner  as  to  exhibit  and  record  the 
increase  or  decrease  of  Capital  up  to  the  present  time. 

I  have  found  by  experience  that  the  most  simple  and  rational  explanation  of  the  Balance 
Account  will  be  found  in  the  following  process.*  Let  the  pupil  be  required  to  make  up 
from  his  Ledger,  upon  waste  paper,  a  list  of  his  effects  thus : — 

From  the  Bills  Receivable  Account  I  find  I  have  Notes  in  hand  amounting  to  $500. 
By  the  Cash  Account,  I  find  cash  in  hand      ......     3,080. 

By  W.  Hay's  Account,  I  perceive  he  owes  me     .         .         .         .         .  300. 

Making  the  total  amount  of  my  effects 3,880. 

By  Bills  Payable  Account,  I  find  I  owe  on  my  Notes     300. 

And  to  Warden  &  Bell,  By  their  Account,  I  owe      .     600.     Am't  I  owe,      900. 

Leaving  my  present  Net  Capital 2,980. 

Now,  compare  this  statement  with  our  Balance  Account,  and  I  shall  be  much  mistaken 
if  it  does  not  give  you  a  clear  insight  into  the  nature  and  object  of  that  Account.  You  will 
now  close  all  the  Personal  and  Property  Accounts,  ruling  them  off  to  the  same  pattern 
given  on  our  Ledger,  transferring  the  Balances  at  the  same  time  to  the  proper  side  of  the 
Balance  Account.  When  this  is  completed  you  will  find  the  present  Net  Capital  exhibited 
by  the  Balance  Account  as  in  the  above  statement,  $2,980,  which  according  to  the  Stock 
Account  is  $20  less  than  the  Capital  we  opened  the  books  with.  You  find  the  particulars 
of  this  loss  at  the  Profit  &  Loss  Account.  Close  that  Account  into  Stock  and  then  you 
will  find  that  the  Stock  and  Balance  will  exactly  close  each  other — a  result  that  must 
always  take  place  when  the  operations  are  correct,  because  all  gains  must  produce  a  cor- 
responding increase  of  property,  at  the  Dr.  side  of  Balance,  and  through  the  Profit  &  Loss 
Account  the  credit  side  of  the  Stock  is  increased  exactly  to  the  same  amount.  Losses  affect 
these  two  Accounts  through  the  same  channels  also  precisely  to  the  same  extent. 

These  remarks  apply  to  the  first  set  of  the  following  Books.  After  bringing  all  the 
Balances  down  and  posting  the  second  set,  the  process  of  closing  is  the  same  as  in  the  first 
Balance. 


1.  Where  are  the  abbreviations  Dr.  and  Cr.  placed  ? 

2.  What  is  the  first  thing  to  be  done  after  posting  the  Journal  ? 

3.  What  next? 

4.  What  is  the  purpose  of  closing  the  Ledger? 

*  See  also  Notes  2  to  6,  page  18.    And  directions  for  ruling,  pp.  56  and  57. 
qo 


Dr.       (What  I  Owe.) 


STOCK  ACCOUNT. 


(My  Effects.)      Cr.    i 


1S66. 

Nov. 

30 

Dec. 

31 

To  Profit  &  Loss* 
//    Balance 


To  Balance 


1.  What  !s  posted  to  the  Dr.  side? 

2.  What  to  the  Cr.  side  ? 

3.  When  is  the  account  closed  ? 

4.  How  does-it  then  close? 

5.  How  do  we  mark  the  transfers? 

6.  Why  are  the  balance  entries  rod  ? 


20 

2980 


3000 


28500 


28500 


1866. 

# 

Nov. 

1 

30 

Dec. 

14 

31 

By  Sundries 


20. 
2980. 


By  Bal.  bro't  down 
;/   Sundries  27,930. 

//  Profit  &  Loss        f. 


1 

2 
3 

3000 

mo 

2980 

25000 

520 

28600" 

1.  What  I  owe. 

2.  The  amount  of  my  capital. 

3.  After  the  Profit  &  Loss  is  closed. 

4.  To  or  By  Balance. 

5.  F.  or  Folio. 

6.  Because  they  begin  the  new  account. 


(Purchases.) 


MERCHANDISE. 


(Sales.) 


1866. 

Nov. 


Dec. 


To  Cash 
//  Bills  Payable 
//   Sundries  I'oo. 

//  Profit  &  Loss         f. 


To  Sundries 
//  Profit  &  Loss 


1.  What  is  posted  to  the  Dr.  side? 

2.  What  to  the  Cr.  side? 

3.  How  does  it  close  if  all  be  sold? 

4.  How  if  part  is  unsold  ? 

5.  How  do  we  find  the  $3000  balance  ? 


600 
300 
800 
170 


1870 


2500 

2100 

600 


5200 


1866. 

Nov. 

5 

25 

30 

Dec. 

14 

31 

By  Cash 
//   Sundries 
//  Cash 


1870. 
1700. 


By  Sundries 
//  Wm.  Hay 
//  Balance 


1.  The  cost  and  charges  of  purchases. 

2.  The  sales  made. 

3.  To  or  By  Profit  &  Loss. 

4.  By  Balance,  and  To  or  By  Profit  &  Loss. 

5.  Inventory.    See  p.  59. 


460 
630 

780 


1870 


1500 

700 

3000 


5200 


(Notes  Received.) 


BILLS  RECEIVABLE.  '  (Notes  passed  away  or  lost.) 


1866. 

Nov. 

1 

30 
14 
21 

tdoe 
tdoe 
will 

To  Stock                       2000. 

fiOO. 

1 
2 

how! 

ssed  i 

2000 

1866. 
Nov. 

Dec. 

1.  Tl 

2.  Tl 

3.  Se 

4.  B: 

10 

30 

10 
31 

18  no 

lose  I 
If  ba 
f  Bale 

By  Cash 
//  Balance               fol. 

1 
3 

2 
3 

1500 
500 

2000 

2000 

Dec. 

To  Bal.  bro't  down 
//  Mdse. 
//  Sundries             ssoo. 

3000. 

500 

500 

2500 

By  Cash 
//  Balance              fol. 

500 
3000 

3500 

3500 

1.  Wha 

2.  Wha 

3.  Ho'sv 

4.  How 

s  the  Dr.  side  of  this  account  e 
3  the  Cr.  side  show  ? 
it  stand  when  all  notes  are  pa 
it  always  close? 

iway? 

tes  received. 

)assed  away  or  lost. 

lanced. 

mce  for  the  notes  on  hand. 

*  The  rules  for  posting  do  not  apply  to  the  closing  entries. 

33 


3    Dp.        (Money  Received.) 


GASH. 


(Money  Paid  or  Lost.)      Cr. 


1866. 

Nov. 


Dec. 


To  Stock 
//  Mdse. 
//  Sundries 
//  Mdse. 
II      II 


4160. 

1080. 

3080. 


To  Bal.  bro't  down 
;/  Bills  Eeceivable 
1/   Mdse. 
//  Stock 


fOOO 
460 

1590 
330 

780 


Hgo" 


3080 

500 

1000 

10000 


14580 


1.  "What  does  the  Dr.  side  of  this  account  show  ? 

2.  "What  does  the  Cr.  side  show? 

3.  What  does  the  difference  represent  ? 

4.  How  does  the  accoamt  close  ? 

5  IIow  will  it  stand  when  all  your  money  is  paid  away? 

6  Why  can  the  credit  side  never  exceed  the  debtor? 


1866. 

Nov. 

5 

14 

30 

Dec. 

1 

21 

25 

31 

By  Mdse. 
//        II 

II    Profit  &  Loss 
I,  II 

If  Balance 


1080. 

fol. 


By  Mdse. 
// 
II 
II 
II 
II 
It 


Bills  Receivable 
Mdse. 

Profit  &  Loss 
William  Hay 
Profit  &  Loss    7280. 

Balance  fol. 


600 
200 
150 
130 

3080 


~5W" 

2426 

2000 

50 

2200 

103 

7300 
r^5W 


25 


75 


1.  The  Dr.  side  shows  all  cash  received. 

2.  The  Cr.  side  shows  all  cash  paid  away. 

3.  The  difference  represents  the  balance  in  hand. 

4.  It  always  closes  By  Balance. 

5.  When  all  is  paid  away  the  account  must  be  even. 

6.  Because  we  cannot  pay  away  more  than  we  receive. 


(My  Notes  Paid.) 


BILLS  PAYABLE. 


(My  Notes  passed  away.) 


JS66. 
Nov.    30    To  Balance 


Dec. 


31 


To  Balance 


fol.    3 


fol. 


300 


300 


1.  What  do  the  Dr.  and  Cr.  sides  of  this  acc't  show? 

2.  What  does  the  difference  represent? 

3.  How  does  the  account  always  close  ? 


Nov.   14    By  Mdse. 


30 


By  Bal.  bro't  down 


300 


-wu- 


1.  The  Dr  side  is  the  amount  taken  up,  the  Cr.  side  the  notM 

passed  away. 

2.  The  balance  I  still  owe  on  my  notes. 

3.  Always  To  Balance,  never  By  Balance. 


(My  Acct.  against  him.) 


WILLIAM  HAY. 


(His  Acct.  against  me.) 


1866. 

Nov. 

25 

30 
31 

Dec. 

To  Mdse. 


To  Bal.  bro't  down 
//   Sundries  ^200. 


1 

2 
this  a 

300 

1866. 
Nov. 

Dec. 

30 

21 
31 

300 
2900 

3200 

ccount  sh 

ow? 

1.  Explai 

By  Balance 


By  Mdse. 
II    Warden  &  Bell   200. 

//    Balance 


fol. 

3 

2 
// 

3 

300 

200. 

fol. 

100 
100 

3000 
3200 

2.  How  does  it  close  ? 


1.  Explained  in  the  parenthesis  at  the  head. 

2.  All  personal  accounts  close  either  To  or  By  Balance. 


WARDEN  &  BELL. 


isee. 
Nov. 

30 
31 

To  Balance 

fol. 
fol. 

3 

2 
3 

600 

: 

1866. 

Nov. 

14 
30 

By  Mdse. 

1 

600 

Pec. 

To  Wm.  Hay 
//   Balance 

100 

500 

By  Bal.  bro't  down 

600 

600 

600 

ROBERT  MORRIS. 


lR66i 
Dec 


31 


To  Balance 


fol. 


2000 


Dec     1 


34 


By  Mdse. 


2000 


Dr.    (Its  Value  or  Cost.)     HOUSE,  44  BROADWAY.   (What  it  brings  me  in.)  Cr 


Dec. 


14 


To  Stock 


15000 


1.  ITow  does  thia  account  close  if  the  property  be  on  hand? 

2.  How  ii-  sold? 


Dec. 


31 


By  Balance 


fol. 


1.  By  Balance  if  you  still  own  the  property. 

2.  If  sold  close  To  or  By  Profit  &  Loss. 


15000 


(Expenses  and  Losses.) 


PROFIT  &  LOSS. 


(Gains.) 


Nov. 


Dec. 


80 


31 


To  Cash 
//     // 


To  Cash 

//       II  153.75 

ti  Stock  for  net  gain,  f. 


150 
130 


■^m 


~^o- 

103 

520 


-6T§- 


TT 


1.  What  do  the  Dr.  and  Cr.  sides  of  this  account  show? 

2.  What  accounts  close  into  it? 

3.  When  is  it  closed,  and  into  what  account  does  it  close? 

4.  What  does  the  difference  betAveen  the  sides  represent  ? 


1866. 

Nov. 

10 

30 

Dec. 

21 

31 

By  Cash 

//  Mdse.  260.  fol. 

II  Stock,  net  loss    fol. 


By  Bills  Receivable 
//  Mdse. 


673.75     fol 
153.75     ^"^* 


Net  Gain     520. 


90 

170 

20 


"tm 


1.  The  Dr.  side  shows  all  expenses  and  losses,  and  the  Cr. 

side  all  gains. 

2.  All  accounts  exhibiting  gain  or  loss  are  closed  into  this 

account. 

3.  This  is  the  last  account  closed  but  two.    It  always  closes 

into  Stock,  never  into  Balance. 

4.  The  difference  represents  the  net  gain  or  loss. 


BALANCE 

(My  Effects  and  Debts  due  me.) 


ACCOUNT. 

(What  my  concern  owes.) 


1866. 

Nov. 


Dec. 


30 


31 


To  Bills  Receivable    f 
//  Cash 
//  Wm.  Hay  388o. 

Ket  capital   2980. 


To  Mdse.  fol. 

//  Bills  Receivable . 
//  Cash 
/;  Wm.  Hay 


House 


81300. 

2800. 


Ket  cap.   285J0. 


1.  What  is  transferred  to  the  Dr.  side? 

2.  What  to  the  Cr.  side? 

3.  What  does  the  difference  represent  ? 

4.  How  does  the  account  close? 

5   Is  Stock  or  Balance  first  closed? 


500 

3080 

300 


"i^m 


3000 
3000 
7300 
3000 
15000 


stsoo- 


1866. 

Nov. 


Dec 


30 


31 


By  Bills  Payable       fol. 
//  Warden  &  Bell    9oo. 
//  Stock  for  net  capital 


fol. 


By  Bills  Payable 
II  Warden  &  Bell 
//  R.  Morris  2800. 

M  Stock  for  net  capital 


300 

600 

2980 

3880 


300 

500 

2000 

28500 

31300 


1.  All  my  effects. 

2.  All  amounts  that  I  owe. 

3.  Net  capital  or  net  insolvency. 

4.  By  Stock  for  net  capital,  or  To  Stock  if  I  am  insolvent. 

5.  Usually  the  Stock  first. 


■BF 


Proof  Slieet  Nov.  30,  1806.   Drs, 


Crs.       Proof  Sheet  Dec.  31,  18 OG.    Das. 


Crs. 


Stock 

Mdse. 

Bills  Receivable 

Cash 

Bills  Payable 

Wm.  Hay 

Warden  &  Bell 

Profit  &  Loss 


Stock  f. 

Mdse. 

Bills  Eeeeivable 

Cash 

Bills  Payable 

Wm.  Hay 

Warden  &  Bell 

E.  Morris 

House  in  Broadway 

Profit  &  Loss 


Note. — These  proof  sheets  or  trial  balances  are  taken  off  for  the  purpose  of  ascertaining 
if  both  sides  of  the  Ledger  are  alike  in  amount.  If  this  sheet  comes  out  correct,  your 
Ledger  will  be  sure  to  balance;  but  if  there  should  be  a  difierence  between  its  sides,  the 
Le(^ger  will  certainly  not  balance  until  the  errors  are  sought  out  and  rectified. 


1'eacher's  Examination. — After  closing  the  first  of  the  preceding  sets,  the  pupil 


If  he  cannot  readily  do  so, 
If  he  does  not  wish  to  cheat 


should  be  able  to  answer  his  teacher  the  following  questions 

he  should  refer  again  to  the  instructions  under  the  accounts. 

himself  out  of  the  instruction  that  he  desires  to  obtain,  he  should  by  no  means  consult  the 

key, — that  being  intended  for  teachers  only,  those  who  teach  themselves  included. 


Q.  1. — What  was  your  net  capital  at  the  time  of  closing,  and  which  of  the  accounts 
show  it  ? 
2. — What  was  your  net  gain  or  loss,  and  which  of  the  accounts  show  it  ? 
3. — What  was  the  whole  amount  of  your  gain,  and  what  was  the  whole  amount  of 

your  loss. 
4. — What  did  you  gain  or  lose  on  your  Merchandise  account? 
5. — What  was  the  amount  of  Merchandise  purchased? 
6. — What  was  the  amount  of  your  sales? 

7. — What  amount  of  Merchandise  was  there  on  hand,  or  was  there  any  ? 
8. — What  amount  of  Cash  on  hand  ? 
9. — What  amount  of  Bills  Eeeeivable  on  hand  ? 
\  10. — What  do  you  owe  on  your  Notes? 
11. — What  is  the  whole  amount  of  your  debts,  and  what  account  shows  it? 
12. — What  is  the  whole  amount  of  property  you  now  possess,  and  what  account 

showS'  it  ? 
13. — What  amount  of  property  did  you  possess  at  the  time  of  opening  the  books,  and 

what  account  shows  it? 
14. — What  were  your  average  daily  sales  for  the  month  of  November,  the  time  your 

books  were  open,  allowing  there  were  twenty-six  business  days  in  it  ?''' 
15. — What  was  the  gain  per  cent,  on  your  total  sales  ?f 


The  pupil  should,  when  he  balances  his  Ledger  the  second  time,  answer  the  same  que 
tions  upon  the  balance  of  each  account. 


*  Found  thus — ^Total  sales  per  Merchandise,  Crs.  is  $1870  ^r-  26  =  71|4  average  daily  sales. 

t  Found  thus— The  cost  per  Dr.  side  §1700  :  $100  :  :  $170  (gain) :  10,  the  gain  per  cent.  Or  such  operations  may  be  shortened 
by  making  a  common  fraction,  with  the  gain  or  loss  for  a  numerator,  and  the  cost  for  a  denominator.  Change  this  fraction 
iutc  a  decimal,  carrying  it  to  two  places,  and  it  is  always  the  gain  or  loss  per  cent. 

Note. — In  the  second  balance  of  our  Merchandise  account,  part  of  the  goods  remain  unsold.  The  difference  between  th» 
cost  of  the  whole  (per  Dr.  side)  and  the  amount  on  han<t  per  inventory,  is  the  cost  of  the  part  sold,  with  which  proceed  to 
find  the  gain  per  cent,  as  above.  But  observe,  the  result  of  this  operation  will  only  be  correct  when  the  inventory  of  goods  on 
hand  is  taken  at  cost  and  charges. — See  Note  3,  p.  61. 

36 


SET   II.— DOUBLE   ENTRY   BOOK-KEEPING. 

EXEMPLIFYING  THE   TRANSFER   OF   BUSINESS 

FROM   THE  PRECEDING   TO   THE   PRESENT   SET. 
THIS    SET   EMBRACES   ALL   THE   MOST   APPROVED   FORMS   OF 

AUXILIARIES, 

CONNECTED  AS  SUCH  WITH  THE  PRINCIPAL  BOOKS. 


Also,  concise  and  compreliensive  rules  for  Journalizing,  practically  illustrated  with  ORAL 
EXERCISES. 

The  written  exercises  embrace — 

Illustrations  of  Buying  and  Selling  Merchandise  on  private  Account  and  on  Account  of 
others. 

Buying  and  selling  the  same  on  joint  Account. 

Importing  and  Exporting  on  private  Account,  on  Account  of  others,  and  on  Account  of 
ourselves  and  others  in  Company. 

Receiving  and  forwarding  Merchandise. 

The  management  and  settlement  of  Executors'  Accounts. 

Buying,  Selling,  Remitting,  Collecting,  Discounting,  Accepting,  and  Paying  Bills  of 
Exchange. 


SHIP  OWNERS'   ACCOUNTS. 

As  sole  owner,  as  part  owner,  and  as  agent  for  the  owners,  exemplifying  a  dividend  and 
settlement  of  their  Accounts,  the  adjustment  and  settlement  of  Marine  Losses,  and  of  Loss 
by  Fire. 

We  have  so  studiously  avoided  lengthening  the  process  of  instruction  by  any  unnecessary 
entries,  that  probably  no  two  entries  can  be  found  in  the  set  which  do  not  illustrate  a 
different  application  of  the  principles  of  the  science.  On  the  other  hand,  the  utmost  care 
has  been  taken  to  carry  instruction  into  every  department  of  the  most  extensive  and 
diversified  commence,  to  omit  no  information  necessary  for  forming  the  most  accomplished 
Accountant.  The  whole  is  condensed  into  about  twelve  pages  of  Day  Book  and  Journal, 
accompanied  with  such  mental  exercises  as,  if  attended  to,  will  leave  the  learner  no  means 
of  getting  through  the  written  exercises  without  mastering  the  subject. 


DIRECTIONS   TO   TEACHERS. 

It  has  been  before  stated  that  the  preceding  set  is  only  designed  as  an  introduction  for 
those  altogether  uninitiated.  Those  who  understand  the  disposition  of  the  debits  and 
credits  in  the  Ledger,  will,  after  a  perusal  of  the  initiatory  set,  commence  with  the  study 
of  the  following  RIJLES  AND  ORAL  EXERCISES.  They  afterwards  study  the  defini- 
tions and  answer  the  interrogatories  upon  the  Auxiliaries.  In  some  cases  it  may  be  neces- 
sary to  write  the  Cash  Book  and  Bill  Books,  but  most  of  learners  will  find  no  difficulty  in 
applying  them  without  this  trouble.  The  process  of  teaching  those  who  have  been  through 
the  introductory  set  and  those  who  commence  here,  is  hereafter  in  all  respects  the  same. 

37 


SET  II.— DOUBLE  ENTEY  BOOK-KEEPING. 


RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 


Note. — The  pupil  should  lay  a  sheet 

Give  the  general  rule  for  debits 
and  credits. 

Repeat  the  general  rule  for  open- 
ing books. 

Examples. 
QuES.  1.  If  you   begin   business 
with  a  capital  of  $7000 
cash,  what  will  be  your 
Journal  entry? 

2.  If  you  have  cash  $7000, 
merchandise  $3000,  W. 
Hay  owes  you  $5000,  and 
you  own  the  brig  Troy 
worth  $5000  ? 

3.  Suppose  you  owe  at  this 
time  on  your  notes  and 
bonds  $2000,  to  R.Morris 
on  acct.  $3000. 

4.  State  more  particularly 
what  is  meant  by  the 
term  "Sundries  to 
Stock." 


5.  Explain  the  full  mean- 
ing of  the  expression 
"Stock  to  Sundries,"  in 
your  3d  answer. 


Repeat  the  rule  for  debiting  per- 
sons. 

Examples. 

6.  If  W.  Hay  buys  $600 
worth  of  mdse.  of  you  on 
Book  acct.  ? 

7.  If  you  pay  R.  Morris 
$1000  cash  which  is  at 
his  credit  on  your  Books  ? 

8.  If  Morris  make  an  abate- 
ment of  $100  from  the 
above  acct.  and  pay  him 
$900  in  full  for  balance? 

Repeat  the  rule  for  crediting  per- 
gonal accounts. 

Examples. 

9.  Suppose  W.  Hay  pays  you 
the  above  $600  in  cash  ? 

10.  If  he  fail  and  you  receive 
$300  cash  and  lose  the 
balance  ? 


LESSON  I. 

of  paper  over  the  answers  while  he  reads  the  questions  td  himself. 

Rule  I. — The  debits  and  credits  arising  out  of  every 
transaction  must  be  equal  in  amount. 

Rule  II. — The  Stock  account  represents  myself,  and 
must  therefore  be  debited  for  what  I  now  owe  and  cre- 
dited for  what  I  now  possess. 

Ans.  1.  Cash,  Dr $7000 

To  Stock,  .         .         .  $7000 

2.  Sundries  to  Stock,    .         .         .  20000 

Cash,        ....  7000 

Mdse 3000 

W.  Hay,  ....  5000 

.       Brig  Troy,        .         .         .  5000 

3.  Stock  to  Sundries,     .         .         .  5000 

To  Bills  Payable,      .         .  2000 

R.  Morris,   .         .         .  3000 

4.  It  may  be  stated  more  fully  thus :  Several  accts. 

are  Dr.  to  the  Stock  acct.  which  is  credited 

for $20000 

The  Cash  acct.  is  Dr.  for .  .  $7000 
And  the  mdse.  acct.  is  debtor  for  3000 
And  Wm.  Hay's  acct.  debtor  for  5000 
And  the  Brig  Troy's  account  is 

debtor  for    .         .         .         .5000 

5.  To  express  it  in  full  we  might  say :  The  Stock 

account  is  debtor  to  several  accts.  for  $5000, 
viz.,  it  is  Dr.  to  the  Bills  Payable  account, 
which  is  credited  for     .         .         .  $2000 
And  it  is  Dr.  to  R.  Morris's  account, 

which  is  credited  for  .         .     3000"^ 

Rule  III. — When  he  gets  into  my  debt  he  is  Dr.  for 
the  amount.  When  I  get  out  of  his  debt  he  is  Dr.  for 
what  T  pay  or  cease  to  owe  him. 

Ans.  6.  Wm,  Hay,  Dr.         .         .         .  $600 

To  mdse.  sold  him  on  acct.     .  $600 

7.  R.  Morris,  Dr 1000 

To  Cash  paid  him  in  full,       .  1000 

8.  R.  Morris  to  Sundries,  to  close  .   1000 

To  Profit  &  Loss,  ...  100 

//    Cash  paid  him  in  full,       .  900 

Here  we  only  pay  Slorris  $900,  but  we  debit  him  for 
$1000 — what  we  cease  to  owe  him. 

Rule  IV.  AVhen  I  get  into  his  debt  he  is  Cr.  for  the 
amount.  When  he  gets  out  of  my  debt  he  is  Cr.  for 
what  he  pays  or  ceases  to  owe  me. 

Ans.  9.  Cash,  Dr $600 

-.  To  Wm.  Hay  in  full,     .         .  600 

10.  Sundries  to  Wm.  Hay,  to  close  acct  600 

Profit  &  Loss  for  abatement,        .     300 
Cash  received  in  full, .         .         .     300 
Here  you  have  only  received  $300,  but  the  rule  re- 
quires you  to  credit  him  for  $600 — the  amount  he  ceases 
to  owe  you. 


*  While  this  and  the  preceding  answer  will  give  the  learner  a  distinct  conception  of  the  meaning  of  all  similar  Journal  expres* 
•ions,  these  expositions  at  the  same  time  show  how  much  accountants  have  abbreviated  common  language  without  obscuring 
their  meaning;  for  while  the  rules  are  observed  no  language  is  less  liable  to  be  misunderstood  than  that  used  by  accountant* 

38 


SET  II.— DOUBLE  ENTEY  EULES. 


Quest.  11.  If  Hay  balance  his 
Book  account  by  giving  you 
his  note  for  $600  ? 

12.  If  he  afterwards  fail  and 
you  lose  the  am't  of  the  note  ? 

Repeat  the  general  rule  for  re- 
ceiving and  delivering  property. 

Examples. 

13.  If  you  sell  merchandise  for 
cash  $500? 

14.  If  you  sell  it  for  the  pur-  j 
chaser's  note  ?  | 

15.  If  you  pay  your  own  note 
for  $1000,  half  in  cash  and 
half  in  merchandise  ? 

16.  If  you  buy  merchandise  for 
cash  $100  ? 

17.  If  you  give  your  note  for 
the  same  purchase  ? 

18.  If  you  buy  $400  worth  of 
merchandise  and  pay  the 
amount  in  other  merchandise 
from  store? 

Give  a  more  particular  rule  for 
debiting  property  accounts. 

Examples. 

19.  If  you  buy  the  brig  Tribune 
for  $12,000  and  pay  $6000  in 
cash,and  give  a  Bottomry  bond 
on  the  vessel  for  the  balance  ? 

20.  Suppose  this  vessel  becomes 
yours  by  the  legacy  of  a  de- 
ceased friend  ? 

21.  If  you  pay  cash  $1000  for 
repairing  her  ? 

Give  the  rule  stating  when  pro- 
perty accounts  are  always  credited. 

Examples. 

22.  If  you  receive  $1000  cash 
for  freight  of  Brig  Tribune  ? 

23.  If  your  agents  Taylor  &  Co. 
advise  you  that  tl^ey  have  re- 
ceived $1500  cash  for  freight 
to  New  Orleans? 

24.  If  you  sell  the  Brig  Tribune 
for  $16,000  and  receive  in 
payment  a  dwelling-house  in 
2d  street  and  a  Bill  of  Ex- 
change on  London  for  $|6000  ? 

25.  If  you  lose  the  Brig  Tribune 
by  fire  or  shipwreck  before 
she  is  insured  ? 

26.  If  you  present  $500  cash  to 
a  friend  ? 


Ans.  11.  Bills  Receivable  Dr.     .         .        600 
To  Wm.  Hay  for  his  note  to  close  acct. 


600 


12.  Profit  and  Loss  Dr.  .         .         .        600 

To  Bills  Receivable,    ...  600 

Rule  V.  The  thinji^  received  Dr.  to  the  ihiu":  delivered. 


500 


18.  Cash  Dr 

To  Merchandise,      '    . 

14.  Bills  Receivable  Dr. 
To  Merchandise, 

15.  Bills  Payable  to  Sundries, 
To  Cash  for  money  paid, 

//  Merchandise  for  sale, 

16.  Merchandise  Dr. 
To  Cash,     .... 

17.  Merchandise  Dr. 
To  Bills  Payable, 

18.  Merchandise  Dr 
To  Merchandise, 

Some  contend  that  any  entry  of  such  transactions  is 
unnecessary — that  it  is  like  giving  change  for  a  $50 
bank  note.  But  if  such  transactions  are  not  recorded 
your  merchandise  account  will  not  show  the  amount  of 
your  purchases  nor  the  amount  of  your  sales. 
Rule  VI.  "When  property  becomes  mine  it  is  Dr.  for 
its  cost  or  value.  When  it  costs  me  any  thing 
afterwards  it  is  Dr.  for  that  cost. 
19. 


500 


1000 


100 
100 


400 


500 

500 

500 
500 

100 

100 

400 


20. 


Brig  Tribune  to  Sundries, 
To  Cash,     . 
If  Bills  Payable, 

Brig  Tribune  Dr. 


12,000 


12,000 


6000 
6000 

To  Stock, 12,000 

Here  the  property  is  Dr.  for  its  value  although  it 
costs  you  nothing. 

21.  Brig  Tribune  Dr.      .         .         .      1000 

To  Cash, 1000 

Rule  YII.  When  it  brings  me  in  any  thing  it  is  Cr. 
for  the  amount.  When  it  ceases  to  be  mine  it  is 
Cr.  for  its  value  or  what  I  receive  for  it. 

22.  Cash  Dr.  .         .         .         .         .      1000 

To  Brig  Tribune  for  Freight, 

23.  J.  Taylor  &  Co.  Dr.  .         .         .      1500 
To  Brig  Tribune,  for  freight  collected, 

24.  Sundries  to  Brig  Tribune, 
House  in  2(f  street,      .         .         .10,000 
Bills  Receivable,  .         .         .     6,000 


1000 

1500 
16,000 


25.  Profit  and  Loss  Dr.  .         .         .  10,500 

To  Brig  Tribune,  to  close  account,  10,500 


26.  Profit  and  Loss  Dr.   .         .         .        500 

To  Cash,      .         .  .         .  500 

Thus,  you  perceive,  when  property  ceases  to  be  yours, 
either  by  sale,  loss,  or  giving  away, 
39 


it  is  to  be  credited 


SET  II.— DO UBl^i^  EiNTli:^:  BOOK-KEEPING. 


RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 

LESSON  II. 


Repeat  the  Rule  for  debiting  and 
crediting  Profit  and  Loss  accounts. 

Examples. 
QUES.  1.    If  you  lose  your  purse 
with  $100  cash  in  it  ? 

2.  If  you  find  $500  cash  and 
cannot  find  the  owner  ? 

3.  If  you  pay  cash  for  a  new 
suit  of  clothes  $50  and  $100 
for  new  house  furniture. 

4.  If  you  lose  $1000  worth  of 
mdse.  by  fire,  uninsured  ? 

Repeat  the  Rule  respecting  Bills 
of  Exchange,  Drafts,  Orders, 
&c. 

5.  What  is  a  Bill  Receivable  ? 

6.  What  is  a  Bill  Payable? 

7.  If  you  draw  on  R.  Morris 
for  $100  and  sell  the  bill  for 
cash  at  par  ? 

8.  If  you  sell  at  5  per  cent,  pre- 
mium? 

9.  If  you  sell  at  5  per  cent,  dis- 
count ? 

10.  What  will  be  Morris's  entry 
when  he  accepts  this  bill  ? 

11.  If  Morris  draw  on  you  at 
sight  in  favor  of  S.  King,  for 
$1000,  and  you  pay  the  bill  in 
cash  ? 

12.  If  he  draw  at  60  days'  sight 
in  favor  of  Wm.  Hay,  and 
you  accept  ? 

13.  Afterwards  you  take  up  this 
acceptance  with  cash  ? 

14.  If  Wm.  Hay  draw  an  order 
on  you  for  $50  in  favor  of  J. 
Toole,  which  you  pay  in  mdse. 
from  store  ? 

15.  If  you  owe  James  Day  $20 
and  give  him  an  order  on  Hay 
payable  in  mdse.  for  $20  ? 

16.  If  you  buy  a  Bill  of  Ex- 
change for  $1000  for  cash  at 
par? 

17.  If  you  buy  at  5  per  cent,  pre- 
mium ? 

18.  If  you  buy  at  5  per  cent,  dis- 
count ? 


Rule  VIII.  Profit  and  Loss  accounts  are  always  debiteu 
when  I  lose  and  credited  when  I  gain. 

Ans.  1.  Profit  and  Loss,  Dr.  .         .         .     $100 

To  Cash, $100 

2.  Cash,  Dr 500 

To  Profit  and  Loss,  ...  500 

3.  Sundries  to  Cash,  .         .         .•        .  150 
Profit  and  Loss  or  Expense  acc't  for 

the  clothes, 50 

House  furniture  for  the  articles  bo't        100 

4.  Profit  and  Loss,  Dr.        .         .         .     1000 

To  Merchandise,      ....  1000* 

Rule  IX.  Credit  a  person  always  when  you  draw  on 
him  on  your  own  account,  and  debit  him  when  he 
draws  on  you  on  his  account.* 

5.  Any  obligation  on  paper  which  I  hold  against  others. 

6.  The  same  kind  of  obligations  which  I  have  given 
to  others,  and  which  they  are  holding  against  me. 

7.  Cash,  Dr 100 

To  R.  Morris, 

8.  Cash  to  Sundries,  . 
To  R.  Morris  for  the  bill. 

Profit  and  Loss  or  Exchange  acc't.  for 
the  premium,  .... 

9.  Sundries  to  R.  Morris,  . 
Cash  for  the  net  proceeds. 
Profit  and  Loss  or  Exchange  for 

Discount,    . 


10.  Dufi",  Dr. 
To  Bills  Payable,    . 

11.  R.  Morris,  Dr. 
To  Cash, 

12.  R.  Morris,  Dr. 
To  Bills  Payable,     . 

13.  Bills  Payable,  Dr.  . 
To  Cash, 

14.  W.  Hay,  Dr. 
To  Merchandise, 

15.  James  Day,  Dr. 
To  William  Hay,    . 

16.  Bills  Receivable,  Dr. 
To  Cash, 

17.  Sundries  to  Cash,  . 
Bills  Receivable  for  the  Bill,   . 
Profit  and  Loss  or  Exchange  for 

the  Premium, 

18.  Bills  Receivable  to  Sundries,  . 
To  Cash  for  money  paid, 

Profit  and  Loss  for  Discount, 


105 


95 


100 
100 

5 

100 


5 

100 

1000 
1000 
1000 
50 
20 
1000 


1000 

50 
1000 


100 
1000 


1000 


1000 

50 

20 

1000 
1050 


950 
50 


*  Let  the  learner's  mind  be  thoroughly  impressed  with  the  meaning  of  this  rule  and  the  two  following  qiiestions;  otherwise 
it  will  take  him  a  long  time  to  divest  himself  of  the  idea  that  every  draft  or  bill  he  draws  upon  his  correspondent  must  appear 
on  one  or  the  other  of  the  Bill  Accounts. 

dO 


DOUBLE   E^^TRY  RULES. 


QhEST.  19.  If  you  sell  this  bill  at 
10  per  ct.  premium  for  cash? 

20.  If  you  sell  it  at  10  per  ct. 
discount? 

Give  the  rule  for  keeping  the 
accounts  of  consignments  received. 

21.  What  do  you  do  with  the  In- 
voice of  the  property  ? 

Examples. 

22.  If  you  receive  $1000  worth 
of  goods  from  Morris  for  sale 
on  his  acct.  You  give  bonds 
for  $500  duties  and  pay  frt., 
&c.  in  cash,  $100? 

23.  If  you  sell  $100  worth  of 
these  goods  for  cash? 

24.  If  Morris  draw  on  you  at 
sight  for  $300  and  you  pay 
the  draft,  $100  in  his  own 
goods,  $100  worth  of  your 
own  goods,  and  $100  in  cash? 

25.  How  is  the  net  proceeds 
found  on  any  account  sales  ? 

26.  Suppose  Morris's  goods  all 
sold  for  $2000.  You  have 
paid  charges  $700,  your  com- 
mission is  $100,  leaving  the 
net  proceeds  $1200.  How  do 
you  close  the  sales? 

27.  Where  should  this  entry  be 
first  made? 

28.  Why  not  credit  Morris  for 
the  amount  of  the  Invoice  of 
the  above  consignment? 

29.  If  he  draw  on  you  for  $500 
on  acct.  of  the  sales? 

Give  the  rule  for  keeping  acct. 
of  property  you  consign  to  others. 
Examples. 

30.  If  you  ship  by  the  Herald 
and  consign  to  K.  Morris, 
London,  for  sale  on  your  own 
acct.  Mdse.  4000,  pay  charges 
in  cash,  $400,  give  your  note 
for  insurance,  600  :  =  $5000  ? 

31.  If  you  draw  on  Morris  for 
$500  on  %  of  this  consignm't? 

32.  If  he  return  you  acct.  sales 
$6000,  with  a  remittance  in 
specie  in  full  for  same  ? 

33.  If  he  send  you  the  acct. 
sales  without  the  remittance? 

34.  If  you  receive  acct.  sales, 
$6000,  and  before  making  an 
entry  of  the  returns  draw  on 
him  and  sell  the  bill  for  cash 
at  8  per  ct.  premium? 


Ans. 


20. 


19.  Cash  to  Sundries 

1100 

To  Bills  Receivable     . 

1000 

//  Profit  &  Loss,  for  premium 

100 

Sundries  to  Bills  Receivable    . 

1000 

Cash  for  net  proceeds 

900 

Profit  &  Loss  for  the  10  per  ct. 

Bis- 

count      .... 

100 

Rule  X. — Bebit  the  owner's  Sales  for  all  charges 
incurred,  and  credit  the  same  account  for  what  the  pro- 
perty sells  for. 

21.  I  enter  a  copy  of  it  on  the  Invoice  Book,  but 
make  no  other  entry  of  it. 

22.  R.  Morris's  Sales  to  Sundries  .         .     600 

To  Bills  Payable  for  the  bonds     .  500 

//  Cash  paid  for  freight,  &c.        .  100 

23.  Cash,  Br 100 

To  Morris's  Sales        ...  lOu 

24.  R.  Morris,  Br.  to  Sundries       .         .     300 

To  Morris's  Sales        ...  100 

//  Merchandise ....  100 

//  Cash 100 

25.  By  deducting  all  charges,  including  my  commis- 

sion, from  total  sales. 

26.  R.  Morris,  Sales  to  Sundries  to  close 

acct 1300 

To  Commission   ....  lOO 

n  R.  Morris,  for  net  proceeds     .  1200 

27.  The  particulars  of  such  entries  must  always  ap- 

pear upon  the  Bay  Book. 

28.  Because  I  do  not  get  in  debt  to  him  for  any  thing 

but  the  net  proceeds  of  what  the  goods  sell  for. 

29.  I  debit  his  private  account  for  all  advances  made 

on  account  of  the  consignment,  and  never  the 


Rule  XL — Bebit  Shipment  or  Adventure  to  such  a 
place  for  the  cost  and  charges  of  the  investment,  and 
credit  the  same  account  for  what  it  brinors  me  in. 


30.  Shipment  to  London  to  Sundries 
To  Mdse.    .        ,.         .         . 
//  Cash      .... 
ir  Bills  Payable 


5000 


4000 
400 
600 


31.  I  credit  his  private  account  for  it — not  the  ship- 
ment to  London. 


32.  Cash,  Br.        .         .         . 
To  Shipment  to  London 


33.  R.  Morris,  Br. 


To  Shipment  to  London 
34.  Cash,  Br.        .        ■ . 

To  Shipment  to  London 

41 


6000 
6000 


6480 


6000 


6000 


6480 


SET  II.— DOUBLE   ENTRY  BOOK-KEEPING. 


RULES  FOR  JOURNALIZING,  WITH  ORAL  EXERCISES. 

LESSON  III.— ON  JOINT  ACCOUNTS. 

/ 

Joint  Accounts  ^  or  special  partnerships  imply  tliose  operations  in  which  several  indi- 
viduals or  commercial  houses  unite  in  the  purchase  and  sale  of  a  particular  article  on  specu- 
lation. Their  joint  interest  is  confined  solely  to  these  transactions,  and  the  parties  give 
themselves  no  joint  title,  neither  do  they  become  publicly  known  as  a  firm.  Their  sales, 
and  sometimes  their  purchases,  are  eflfected  by  a  manager,  who  generally  keeps  the  account 
of  the  same  in  his  own  private  books;  and  the  partnership  terminates  for  the  time  with  the 
sale  of  the  joint  property.  The  learner  must  understand  that  although  we  cannot  avoid 
calling  these  connexions  partnerships,  yet  they  differ  essentially  from  General  Partner- 
ships, 2  where  the  parties  are  legally  and  publicly  known  under  a  firm  or  title,  as  Hay, 
"Wood  &  Co.,  and  who  contribute  a  certain  capital  for  the  purpose  of  carrying  on  a  general 
business  for  a  specified  period. 

The  manager  of  the  joint  sales  keeps  the  account '  in  his  own  private  books  under  the 
title  of  Sales  in  Co.*  If  he  have  more  than  one  in  hand,  he  distinguishes  them  by  prefix- 
ing to  the  title  numbers,  as,  1st  Co.,  2d  Co.,  &c.  ^  The  manager  debits  his  joint  account  for 
HIS  own  share  only  of  the  first  cost,  and  for  all  charges  incurred  while  in  his  hands,  and 
*  credits  the  same  account  for  the  total  sales,  for  the  other  partners'  shares  in  the  property 
as  well  as  his  own.* 

The  following  remarks  will  be  useful  in  enabling  the  student  to  comprehend  the  transac- 
tions to  which  this  rule  is  to  be  applied.  The  manner  of  opening  the  accounts  by  the  manager 
as  well  as  the  silent  partners,  will  vary  according  to  the  manner  of  making  up  the  joint 
stock  put  in  speculation.  When  the  manager  or  any  of  the  partners  purchases  or  famishes 
property  to  the  concern,  ^  each  of  the  other  partners  must  be  immediately  furnished  with  a 
copy  of  the  invoice;  and  when  the  sales  are  completed,  ^  each  one  must  have  a  copy  of  the 
account  sales.  The  joint  stock  is  generally  made  up  in  one  or  the  other  of  these  three 
ways. 

1.  When  each  Partner  advances  his  own  Share — Each  silent  partner  keeps  his 
account  under  the  title  of®  "Adventure  in  Co.,"  debiting  it  for  its  cost,  and  crediting  it 
for  what  it  brings  him  in,  precisely  as  he  would  a  private  adventure  or  consignment. 

The  manager  makes  his  ^°  Sales  in  Co.  Dr.  for  his  own  share  only,  and  receives  the 
other  partners'  shares  as  he  would  consignments. . 

2.  If  the  Manager  purchases  or  finds  the  whole  Stock —  "  As  before  he  debits 
^*  Sales  in  Co."  for  his  own  share,  and  he  debits  each  of  the  silent  partners  for  their  share; 
they  at  the  same  time  crediting  him  and  debiting  their  "Adventures  in  Co." 

3.  If  the  Manager's  share  be  paid  or  put  in  by  one  or  more  of  the  silent 
partners — The  manager's  debit  entry  will  be  as  before,  ^^  and  he  credits  him  or  them,  to 
whom  he  becomes  indebted  for  his  share,  they  at  the  same  time  debiting  him  for  the  same 
amount.     Their  own  "Adventures  in  Co.,"  they  debit  as  before. 

1.  What  are  Joint  Accounts  or  special  partnerships?  2.  What  are  general  partnerships?  3.  Where  does  the  manager  of  the 
joint  sales  keep  the  account?  4.  How  does  he  distinguish  them  if  he  have  several?  5.  For  what  does  the  manager  debit  his 
joint  account?  6.  What  does  he  credit  it  for?  7.  What  is  to  be  done  when  property  is  bought  on  joint  account?  ^  W'ha-t  ja 
the  manager's  duty  when  the  sales  are  completed?  9.  Under  what  title  do  the  silent  partners  keep  their  accounts?-  10.  What 
title  does  the  manager  use?  11.  When  the  manager  finds  the  whole  joint  stock,  what  accounts  does  he  debit  for  it?  12.  If  the 
manager's  share  be  paid  in  by  the  other  partners,  whom  does  he  credit  for  it? 

*  The  author  of  the  "  National  System  of  Book-keeping,"  a  recent  publication,  and  in  some  respects  an  ingenious  work, 
takes  a  different  view  of  this  matter.  By  his  rule  the  manager  delnts  the  joint  account  for  the  whole  stock.  He  adduces  some 
ingenious  arguments  in  favor  of  his  theory,  but  he  appears  to  overlook  the  fact  that  his  reasoning  only  applies  where  the 
transactions  are  entered  in  honks  helonging  to  the  joint  business,  and  not  when  entered  in  the  private  books  of  the  manager. 
Here  he  does  not  seem  to  perceive  that  his  theory  will  often  inevitably  compel  the  Book-keeper  to  debit  his  joint  account  for 
what  the  silent  partners  are  legally  responsible  to  him,  and  to  credit  the  same  parties  for  what  he  is  not  responsible  to  them. 
This  is  certainly,  at  all  tim«s  and  under  all  circumstances,  an  awkward  and  dangerous  principle  to  admit  in  accounts.  We 
have  laid  down  a  rule  that  can  never  lead  the  Book-keeper  into  such  a  dilemma.  13y  its  provisions  a  person  is  always  held  ro 
sponsible  in  his  private  account  from  the  time  that  that  responsibility  commences.  And  the  fact  of  his  having  property  in  our 
hands  for  sale  on  his  account,  gives  no  pretext  for  a  deviation  from  the  rule — not  even  though  his  responsibility  or  indebted- 
ness be  created  by  advances  made  to  him  expressly  on  account  of  the  p "operty  so  placed  in  our  hands  for  sale. — See  Question 
29,  p.  41. 

42 


DOUBLE  E^^TIiY  EULES. 


Repeat  tlie  rule  for  conducting 
a  joint  account  as  manager  of  tlie 
sales 

Examples. 

Quest.  1.    How   does   the   silent 
partner  keep  his  account  ? 

2.  If  you  purchase  on  your  note 
for  your  Joint  acct.  with  Wm. 
Hay,  $1000  worth  of  Mdse.? 

3.  Why  not  debit  sales  in  com- 
pany for  the  whole  amount  ? 

4.  What  would  be  your  entry, 
supposing  Hay  gave  you  his 
note  for  the  $500  before  you 
made  the  above  entry  ? 

5.  What  would  be  Hay's  entry 
in  Answer  2  ? 

6.  If  he  gave  Duff  his  note,  as 
in  Answer  4  ? 

7.  What  will  be  your  entry 
where  Hay  puts  $2000  worth 
of  goods  in  your  store  for  sale 
on  joint  acct.  ? 

8.  Why  not  credit  Hay  for  the 
whole  $2000? 

9.  What  will  be  Hay's  entry  in 
Answer  7,  if  he  purchase  the 
goods  on  his  note  ? 

10.  If  you  sell  $2000  worth  of 
the  above  goods,  receiving  in 
payment  cash  $1000,  and  the 
buyer's  note  for  $1000  ? 

11.  If  you  barter  the  remainder 
for  goods  on  your  own  acct.  ? 

12.  The  property  being  all  sold 
for  $3000,  and  the  whole  first 
cost  $2000,  and  your  5  per  ct. 
commission  being  $150,  what 
entry  will  close  sales? 

13.  Explain  how  you  find  the 
amts.  composing  this  entry? 

14.  If  you  receive  from  R.  Morris, 
of  London,  $6000  worth  of 
Mdse.  for  sale  on  acct.  of  him- 
self, J.  Taylor  &  Co.,  of  New 
Orleans,  and  yourself,  upon 
which  you  pay  cash  for  duties 
SIOOO? 


Rule  XII. — Debit  Sales  in  Co.  for  my  own  share 
only  of  the  first  cost  and  for  the  whole  charges  incurred 
while  in  my  possession,  and  credit  the  same  account  for 
the  total  sales. 

Rule  XIII. — Debit  Adventure  in  Co.  for  its  cost, 
and  credit  for  what  it  brings  him  in. 

Ans.  2.  Sundries  to  Bills  Payable  .         .  $1000 

1st  Co.  Sales,  for  my  half  .         .     500 

W.  Hay,  for  his  half        .         .         .500 

3.  Because  Hay  becomes  legally  responsible  to  me 
from  this  date  for  $500,  and  must,  by  Rule  III., 
be  made  Dr.  for  the  amount.      It  becomes  his 

.  property  by  virtue  of  our  agreement,  is  at  his  risk, 
and  if  lost  by  fire  or  perish  by  any  other  means, 
not  in  consequence  of  my  carelessness,  he  will 
have  to  pay  me  this  $500. 

4.  Sundries  to  Bills  Payable .         .         .  1000 
1st  Co.  Sales,  for  my  half .         .         .500 
Bills  Receivable,  for  Hay's  Note  for 

his  half 500 

5.  1st  Co.  Adventure,  Dr.      .         .         .     500 

ToDufi" 500 

6.  1st  Co.  Adventure,  Dr.      .         .         .     500 

To  Bills  Payable    ....  500 

7.  1st  Co.  Sales,  Dr 1000 

To  Wm.  Hay  .         .         .         .  1000 

8.  Because  I  do  not  get  in  debt  to  him  for  any  more 
than  my  own  half.  He  is  still  the  owner  of  one- 
half  the  amount,  and  if  the  property  never  sells 
I  shall  never  be  accountable  to  him  for  any  thin^^' 
but  my  own  share. 

9.  Sundries  to  Bills  Payable .         .         .  2000 
1st  Co.  Adventure,  for  his  own  share    1000 
Dufi",                         for  his  share         .  1000 

10.  Sundries  to  1st  Co.  Sales  .         .         .  2000 

Cash 1000 

Bills  Receivable        ....  1000 

11.  Merchandise,  Dr 1000 

To  1st  Co.  Sales     ....  1000 

12.  1st  Co.  Sales  to  Sundries,  to  close  acct.  2000 

To  Commission       ....  150 

//   W.  Hay,  for  his  half  N.  P.         .  1425 

//   Profit  &  Loss,  for  my  half  gain  .  425 

13.  The  $2000  debit  is  th^  difference  between  the  debit 

and  credit  sides  of  the  account  on  the  Ledger  after 
the  sales  are  completed :  from  the  Cr.  side  we  have 
the  total  sales  $3000  —  150  charges  =  $2850  net 
proceeds,  and  $2850 -i- 2  =  $1425,  each  share; 
and  $1425  — $1000  (my  half  first  cost)  =  $425, 
my  half  net  gain.* 

14.  2d  Co.  Sales  to  Sundries    .         .         .  3000 

To  R.  Morris,  for  my  J  Invoice  2000 

//   Cash  paid  duties        .         .         .  1000 


Note. — This  being  a  new  speculation,  we  give  it  a  new  title :  2d  Co. 

*  No  pupil  can  expect  to  understand  the  settlement  and  closing  of  these  accounts  without  repeated  study.    He  must  analyze 
them  and  ttnd  out  the  results  for  himself. 


43 


SET  II.— DOUBLE  ENTRY  EULES. 
RULES  AND  ORAL  EXERCISES. 


Quest.  15.  What  entry  will  Taylor 
&  Co.,  New  Orleans,  make 
when  they  receive  a  copy  of 
the  Invoice? 
]  6.  "What  entry  will  they  make 
when  they  receive  your  acct. 
sales  without  remittance,  their 
^  being  $3300? 

17.  What  will  be  Morrises  entry 
when  he  receives  your  copy 
of  the  sales,  supposing  you 
send  with  it  a  remittance  in 
specie  for  the  net  proceeds  ? 

18.  Suppose  William  Hay  sends 
you  86000  worth  of  Mdse. 
for  sale  on  joint  acct.,  and  you 
make  up  the  joint  property 
to  $10000  by  adding  $4000 
worth  of  tea,  what  will  your 
entry  be  as  manager,  each 
partner's  share  being  $5000? 

19.  What  will  be  Hay's  entry 
in  this  case  ? 

20.  Supposing  the  whole  of  the 
above  speculation  only  pro 
duce  $5000 
in  your  Ledger  even 
the  sales  are  completed,  what 
entry  will  you  make  to  settle 
the  transaction  with  Hay? 

21.  Suppose  the  goods  had  pro- 
duced $8000,  and  your  charge 
for  commission  is  5  per  ct., 
how  would  the  acct.  close  ? 

22.  Explain  how  you  find  the 
amounts  composing  this  en- 
try? 

23.  Supposing  the  whole  specu- 
lation of  $10000  was  sold  for 
$4000, — the  first  cost  and 
your  commission  being  the 
same  as  before, — how  will  you 
close  the  account? 

24.  Explain  how  the  amounts 
composing  this  entry  are 
found  ? 


leaving  the  acct. 
j^^.    when 


Ans.  15.  Shipment  from  London  to  New 
York  in  Co.,  Dr. . 
To  R.  Morris  for  their  i  Invoice 

16.  Duff,  Dr 

To  shipment  from  London  to  New 
York  in  Co. 

17.  Cash,  Dr 

To  Shipment  to  New  York  in  C^ 

18.  1st  Co.  Sales,  Dr.  to  Sundries,  my 

half  first  cost 

To  Mdse 

//  Wm.  Hay  for  amt.  paid  in  on 
my  acct. 

19.  Sundries  to  Mdse.    . 
1st  Co.  Adventure,  for  his  half 
Dufi",  for  amt.  paid  in  for  him  . 

20.  One-half  of  what  the  goods  have  produced  be- 
longs to  Hay,  and  must  be  credited  or  paid  to  him, 
which  only  leaves  me  $2500  for  what  cost  me 
$5000,  I  have  therefore  lost  $2500,  just  the  amt. 
I  owe  Hay,  therefore.  Profit  &  Loss  Dr.  for  my 


2000 


3300 


8300 


5000 


5000 
1000 


2000 


3300 
3300 


4000 

1000 
6000 


loss 


2500 


To  W.  Hay,  for  his  half  N.  P.      .  2500 

21.  Sundries  to  Sundries,  $4200. 

1st  Co.  Sales,  for  bal.  of  acct.    .         .  3000 
Profit  &  Loss,  for  my  half  loss  .         .  1200 
To  W.  Hay,  for  his  half  N.  P.      .  3800 

/t  Commission,  for  my  commission  400 

22.  The  $3000  bal.  of  acct.  is  the  difference  between 
the  two  sides  of  the  acct.  upon  the  Ledger  after 
all  the  sales  are  posted.  The  total  sales  are  8000  — 
400  charges  =  7600^2  =  $3800,  each  share,  and 
my  half  first  cost  5000  —  3800  =  1200,  my  loss. 

23.  Profit  &  Loss  to  Sundries  to  close  1st 

Co.  Sales     ....  3100 
To  W.  Hay,  for  his  half  N.  P.     .  1900 

n  1st  Co.  Sales,  for  bal.  of  acct. 

on  the  Ledger     .         .         .  1000 

//  Commission,  for  my  5  per  cent. 

in  total  sales        .         .       .  .  200 

24.  They  are  found  as  before  by  deducting  the 
charges  from  the  total  sales  (Rule  12) ;  then  the 
difference  between  my  half  net  proceeds  and  my 
half  first  cost  is  gain  or  loss. 

The  learner  should  now  analyze  a  number  of  similar 
entries  and  find  the  correct  amounts  to  form  the  Journal 
entry,  which,  when  correct,  will  always  close  the  ac- 
count on  the  Ledger. 

Learners  can  never  readily  understand  the  closing 
entry  of  either  joint  accounts  or  consignments  without 
having  before  them  the  position  of  the  account  upon 
the  Ledger.  The  closing  entry  must  always  exactly  fill 
up  the  lesser  side  of  the  account  there. — See  Note  1, 
Morris's  Sales,  p.  107,  and  Notes  5  to  12,  p.  220 
44 


SET  II.— DOUBLE  ENTRY  JBOOK-KEEPING. 


REMARKS  ON  NOTES  AND  BILLS  AND  THE  BILL  BOOK. 

The  heading  of  these  books  so  perfectly  explains  their  nature,  use  and  manner  of  enter- 
ing Bills  lleceived  and  passed  away,  that  any  farther  explanation  seems  unnecessary. 
Learners,  however,  often  experience  difficulty  in  determining  the  precise  day  upon  which 
notes  and  acceptances  will  fall  due.  We  shall  endeavor,  in  the  following  directions,  to  make 
the  matter  understood. 

When  the  term  of  a  Note  is  expressed  in  days,  the  day  of  date  and  the  day  of  maturity 
are  always  counted  as  one,  or,  in  other  words,  Uhe  day  after  drawing  or  accepting  is  the 
first  day  counted  in  the  time  to  run.  Thus,  a  bill  drawn  or  accepted  on  May  1st,  at  20 
days,  will  fall  due  May  24th — including  three  days'  grace.  A  bill  drawn  or  accepted  on 
the  29th  of  April,  at  60  days,  has  to  run — 

In  April 1  day. 

In  May 31    // 

In  June  .         .         .         .         .         .  30    //. 

In  July         ......  1    // 

63  days.     ^Due,  July  1st. 

Again,  a  Bill  drawn  or  accepted  30th  April,  at  90  days,  has  to  run — • 
Ir  May     .......     31  days. 

In  June 30     w 

In  July    .  .  .  .  .  ,  .     31     ir 

In  Auo-ust     ......  1     // 

o  

93  days.     ^Due,  Aug.  1st. 

It  will  be  observed  in  the  last  example  that  no  time  is  allowed  for  April,  although  the 
date  is  on  the  last  day  of  that  month;  as,  according  to  the  rule  laid  down  above,  the  day 
following  the  date  is  the  first  day  counted  in  the  time  to  run. 

When  the  last  day  of  grace  falls  upon  Sunday,  the  note  must  be  paid  the  preceding 
Saturday.  Accountants  do  not,  however,  generally  notice  this  in  recording  their  bills  upon 
their  Books. 

When  the  term  of  a  note  or  bill  is  expressed  in  months,  'calendar  months  are  always 
understood,  and  it  becomes  due  in  the  last  month  of  its  term,  upon  the  day  corresponding 
with  its  date,  to  which  are  added  the  days  of  grace.  It  is  contrary  to  the  established  usage 
of  Merchants  and  Bankers  to  extend  the  time  of  payment  for  any  deficiency  in  the  length 
of  the  months  of  which  the  term  of  the  note  is  made  up.  For  instance,  a  note  drawn  on 
the  31st  March,  at  three  months,  and  another  note  drawn  on  the  30th  March,  also  at  three 
months,  will  *both  fall  due  on  the  same  day — viz.  3d  July.  ^The  custom  of  merchants  not 
permitting  the  term  of  the  note  to  extend  beyond  the  end  of  June,  except  for  the  days  of 
grace. 

The  following  statements  will  disclose  to  persons  operating  extensively  in  notes  and  ac- 
.  ceptances  the  importance  of  attending  to  this  matter  when  drawing  or  accepting.  It  will 
be  seen  that  bills  of  different  dates  running  the  same  time,  will  sometimes  fall  due  the  same 
day,  and  thus  occasion  unexpected  inconvenience. 


Teacher's  Examination-. — 1.  Give  the  rule  for  computing  the  time  when  notes  and  bills  fall  due. 

2.  A  note  dated  29th  April  having  60  days  to  run,  what  day  will  it  be  due? 

3.  When  the  term  of  a  note  is  expressed  in  months,  what  kind  of  months  is  understood  ? 

4.  If  one  note  be  dated  the  oOth  and  another  31st  March,  at  3  mos.,  upon  what  day  will  they  fall  due, 

5.  Why  do  they  both  fall  due  on  the  same  day  ? 

45 


SET  II.— DOUBLE  ENTKY  BILL  BOOKS. 

It  will  also  appear  that  by  obtaining  one  day's  advance  in  the  date,  two,  three,  and  some- 
times four  days  are  gained  in  the  time  of  payment.  For  example,  a  note  or  bill  drawn  or 
accepted  on  the  28th  February,  at  six  months,  is  due  August  31st;  but  if  dated  on  the  1st 
March,  only  one  day  later,  it  would  not  be  due  until  the  4th  September,  thus  extending  the 
term  of  payment  four  days  for  one  day's  difference  in  the  date ;  and  this  difference  in  the 
date  is  frequently  a  matter  of  little  consequence  to  the  payee  of  the  bill. 

In  all  our  computations  in  reference  to  Notes  and  Bills,  three  days'  grace  are  in  every 
instance  included. 

In  the  following  instances,  one  day's  advance  in  the  date  will  give  the  day  of  payment 
three  and  four  days  later.*     Notes  drawn  or  Bills  accepted  February  28th,* 


At    1 

month, 

are 

due  Mar. 

81, 

but  if  dated  1st  March  are  not  due  till  April  4 

At    2 

months, 

II 

May 

// 

II                  It                  May    4 

At    3 

II 

II 

May 

31,' 

// 

n                  It        '           June   4 

At    4 

II 

II 

July 

II  ■ 

II                  II                  July    4 

At    5 

II 

II 

July 

3l' 

// 

//                  II                  Aug.   4 

At    6 

II 

II 

Aug. 

31, 

// 

'/                  //•                  Sept.   4 

At    7 

II 

II 

Oct. 

// 

//                  '/                  Oct.     4 

At    8 

II 

II 

Oct. 

31,' 

// 

II                 II                 Nov.    4 

At    9 

N 

II 

Dec. 

// 

//                  //                  Dec.    4 

At  10 

II 

II 

Dec. 

3l', 

II 

//                  II                  Jan'y  4 

At  11 

It 

II 

Jan'y 

31, 

II 

'/                  II                 Feb.     4 

One  day's  advance  in  the  date  will  in  the  following  cases  give  *two  additional  days  in  the 
time  of  payment.     Notes  drawn  or  bills  accepted  April  30tli, 


At    1  month. 

are  di 

le  June  2,  bu 

t  if  dated 

1st  May  w 

ill  not  I 

)ecome  d 

lie  till  June   4. 

At    3  months, 

It 

Aug.  2, 

II 

// 

It 

Aug.    4. 

At    4       // 

It 

Sept.  2, 

II 

// 

It 

Sept.    4. 

At    6       // 

It 

Nov.    2, 

It 

It 

It 

Nov.    4. 

At    8       // 

It 

Jan'y  2, 

II 

It 

It 

Jan'y  4. 

At    9       // 

II 

Feb.    2, 

II 

If 

If 

Feb.     4. 

At  11       // 

It 

April  2, 

It 

It 

II 

April  4. 

The  above  illustrations  will  serve  to  disclose  the  principle  upon  which  we  desire  to  fix  the 
attention  of  our  students  and  all  commercial  persons  having  any  thing  to  do  with  bills.  An 
error  of  one  day  in  recording  the  maturity  of  a  note  or  acceptance  may  cause  the  holder  to 
lose  his  remedy  against  the  endorsers ;  and  perhaps  cause  him  to  lose  the  note  altogether. 

1.  Notes  drawn  or  Bills  accepted  on  the  last  day  of  February,  with  a  running  time,  in  months,  will  advance  the  day  of  pay- 
ment three  and  four  days,  by  dating  forward  one  day. 

2.  Notes  drawn  or  Bills  accepted  on  the  last  day  of  a  thirty-day  month,  with  a  running  time  in  months,  expiring  in  a  thirty- 
one  day  month,  will  advance  the  day  of  payment  two  days,  by  dating  forward  one  day. 

*  Our  calculations  are  all  made  for  ordinary  years.    When  February  intervenes,  leap-year  makes  a  day's  difference. 


46 


SET  II._DOUBLE   ENTRY  BILL  BOOKS. 

We  have  next  to  point  out  the  other  inconsistency  we  have  alluded  to,  viz.  those  instancei 
in  which  several  notes  or  acceptances,  dated  or  accepted  on  different  days  and  having  the 
same  time  to  run,  in  months,  will  fall  due  upon  the  same  day. 


Suppose  you  give  four  notes  dated — 

August  28,  at  6  months, 
August  29,  at  6  months, 
August  30,  at  6  months, 
August  31,  at  6  months. 

You  will  find  these  notes,  although  of  different  dates  and  all  of  the  same  running  time, 
will  become  due  on  the  Hame  day.^ 


Again,  suppose  you  give  two  notes  dated — 

March  30,  at  3  months, 
March  31,  at  3  months. 

Both  these  notes  will  be  presented  to  you  for  payment  on  the  same  day.* 


The  author  trusts  that  the  importance  of  the  subject  will  be  a  sufficient  apology  for  the 
length  of  this  article.  With  the  exception  of  Bankers,  the  greater  part  of  business  men 
have  no  definite  principle  for  determining  the  precise  day  upon  which  notes  and  bills  will, 
in  some  cases,  become  due. 


1.  Notes  drawn  or  Bills  accepted  on  the  last  three  days  of  thirty-day  months,  and  the  last  four  days  of  thirty-one  day 
months,  with  a  running  time,  in  months,  expiring  in  Februai-y,  will  all  become  due  on  the  same  day. 

2.  Notes  drawn  or  Bills  accepted  on  the  last  two  days  of  thirty-one  day  months,  with  a  running  time,  in  months,  expiilng 
In  a  tliirty-day  month,  will  both  fall  due  on  the  same  day. 

47 


BILLS 


1>AT«. 

HO. 

TOLWrEBi'S  NAMK. 

ON  WHOM  OR  IN  WHOSE 
FAVOR  DRAWN. 

ON  WHAT  ACCOUNT. 

TiMn  ro  txm 

1866. 

Dec. 

14 

1 

James  Day, 

Favor  of  Myself, 

Merchandise, 

3  months. 

21 

2 

C.  Banks, 

1/ 

Cash  Lent, 

L  month. 

1867. 

3 

C.  Murray, 

U 

Do. 

)  months. 

Jan. 

10 

4 

Thomas  Edwards, 

If 

Merchandise, 

30  days. 

19 

5 

James  Carter, 

II 

On  account. 

20  days. 

30 

6 

William  Hay, 

II 

Balance  of  account, 

30  days. 

31 

7 

W.  Morris, 

II 

My  note, 

30  days. 

8 

J.  Warden, 

II 

Do., 

30  days. 

Feb. 

9 

9 

William  Park, 

Warden  &  Bell, 

Morris's  sales, 

4  months. 

12 

10 

James  Carter, 

William  Hay, 

An  old  note, 

1  month. 

25 

11 

J.  Bowline, 

Myself,       . 

Cash  Lent, 

Bottomry. 

12 

Baker  &  Fox, 

On  R.  Morris, 

Cash, 

60  days'  s'gt 

28 

13 

Warden  &  Bell, 

Myself, 

My  Bill  on  London, 

1  month. 

Mar. 

12 

14 

J.  Taylor  &  Co., 

Barclay,  Hope, 

R.  Morris's  sales. 

60  days'  s'gt 

15 

W.  Wallace, 

Favor  of  Myself, 

Estate  of  A.  Lenox, 

2  months. 

16 

Joel  Post, 

// 

//               // 

3  months. 

17 

17 

James  Day, 

// 

Renewing  an  old  note, 

60  days. 

20 

18 

H.  Parnell, 

II 

Estate  of  A.  Lenox, 

60  days. 

April 

6 

19 

James  Walker, 

Warden  &  Bell, 

Money  Lent, 

6  months. 

May 

13 

20 

Warden  &  Bell, 

Bill  on  Landis, 

2d  Co.  Sales, 

30  days'  s'gt 

18 

21 

Austin  &  Co., 

Favor  of  Myself, 

Do. 

60  days. 

22 

W.  Wallace, 

// 

An  old  notefor  A.  Lenox, 

3  months. 

June 

18 

23 

Joel  Post, 

Bill  on  Baring, 

For  Cash,  &c.. 

60  days'  s'gt 

25 

24 

Geo.  Barron, 

My  favor, 

Refined  Sugars, 

30  days. 

^fipR 

26 
21 

* 
3 

William  Hay, 

Hay's  accommodation. 

3  months. 

JOCO. 

Dec. 

C.  Murray, 

Favor  of  Myself, 

Cash  Lent, 

9  months. 

18  C7. 

May 

18 

21 

Austin  &  Co., 

// 

2d  Co.  Sales, 

60  days. 

18 

22 

W.  Wallace, 

II 

Old  note  to  A.  Lenox  est. 

3  months. 

June 

23 

Joel  Post, 

Exchange  on  Baring 

Cash,  &c., 

60  days'  s'gt 

25 

24 

Gleo,  Barron, 

My  favor, 

Refined  Sugars, 

30  days. 

1.  When  a  note  or  acceptance  is  received,  it  is  entered,  with  all  the  particulars,  in  the  left-hand  amoimt  column. 

2.  When  it  is  passed  away,  the  date,  when  and  how  it  is  disposed  of,  are  inserted  in  the  columns  indicated,  and  the  amount  is  ex- 

tended into  the  right-hand  amount  column. 

3.  Note  No.  4  above  is  paid  in  two  instalments.    Such  entries  may  occasionally  he  made  here;  hut  it  will  be  found  more  conve- 

nient in  practice,  when  a  note  is  not  paid  at  maturity,  to  3 charge  it  in  account  to  the  party  wo  look  to  for  paj'ment,  at  the 
same  time  writing  it  out  of  this  book  as  we  have  done  above  with  No.  10. — See  notes  3  and  4,  p.  52.    Before  we  balance  the 

4.  bill  account  on  the  Ledger,  *we  must  see  that  the  difference  between  the  two  sides  of  it,  and  the  difference  between  the  two 

5.  Bides  of  this  book,  agree.    The  above  notes  "  carried  down"  6  are  the  notes  in  hand  at  the  time  of  balancing. 

6.  The  left-hand  amount  column  is  footed  and  noted  "  forward"  when  it  is  filled,  the  amount  appearing  in  the  head  of  the  same 

column  on  the  next  page  "  bro't  forward."    The  right-hand  amount  column  cannot  be  carried  forward  until  the  spaces  are 
all  filled  at  the  time  of  balancing. 
*  All  notes  which  you  endorse  for  accommodation  may  be  entered  In  this  manner  in  red  ink ;  but  they  do  not  pass  through  th« 
fco<ke. 


48 


RECEIVABLE. 


WHIN  SUE. 

1                                                                                              • 

AMOUNT. 

WHEN 

AND  now  DISPOSED  OF. 

AMOUNT. 

k 

A. 

_3_ 

L7 

Jl 

_6_ 

_o_ 

_7_ 

^ 

_?_ 

IL 

IL 

12_ 

18OT.     1 

1 

500 

Mar. 

17 

Rec'd  $100,  Ren'd  8400,   !    500 

U 

1000 

J^n. 

June 

24 

Rec'd  in  Cash  and  Mer.,   i  1000 

24 

1500 

30 

Carried  down, 

1500 

12 

3000 

Feb. 

12 

Cash $2000, Mdse.SlOOO  !  8000 

11 

5 

3 

600 
1515 

800 

75 

Feb. 
Apr. 
Feb. 

12 

22 

6 

Ren'd  $300,  Lost  $300,       600 
Rec'd  in  Cash,                  »;  1515 
Discounted  in  City  Bk.,  ;     800 

75 

5 

i2 

600 
2100 

Jan. 
June 

81 
12 

Discounted  in  City  Bk.,  | 
Rec'd  in  Cash, 

600 
2100 

15 

300 
2000 
4444 

Mar. 
Mar. 
Feb. 

16 
20 

Charged  to  W.  Hay,        ;i    300 
Pollected  by  R.  Morris,  i  2000 
Sold  to  R.  Irvin  &  Co.,  ;  4444 

14 

81 

14 
15 

19 

^2 

15 

2011 
4500 
1200 
500 
400 
1340 

Apr. 
Apr. 
May 
June 
May 

20 
5 

18 
18 
31 
31 

[Rec'd  in  Cash,                 :|  2011 
[Passed  to  P.  Nevius,       114500 
[Renewed  for,                     i  1200 
Rec'd  in  Bill  on  Lond.,  1    500 
Ch'd  to  Profit  &  Loss,      1    400 
Ch'd  to  Estate  of  Lenox,  ^1  1340 
Rec'd  in  Cash  and  Mer.,  I!  2063 

9 

2063 

June 

18 

1 

7000 

May 

25 

Sold  to  C.  Hartwell, 

7000 

20 

21 

3000 
1200 
2000 

June 
// 

30 
// 

// 

Carried  down. 
//           // 
//           1/ 

3000 
1200 
2000 

28 

29 
24 

980 
1  1000 

// 
June 

1      ■ 

// 
26 

II           II 
Endorsed  &  ret'd  to  Hay, 

1 

980 
1000 

^5554 

19 

15554 

19 

1500 

21 

21 

1  3000 

1  1200 

2000 

28 

980 

• 

1.  How  do  we  enter  a  note  or  acceptance  when  received  ? 

2.  How  when  it  is  passed  away? 

3.  How  are  notes  most  conveniently  disposed  of  when  not  paid  at  maturity? 

4.  What  has  to  be  attended  to  before  balancing  the  Bill  account  on  the  Ledger? 
6.  What  are  those  notes  carried  down  ?* 

6.  How  is  this  book  continued  from  one  page  to  another? 

*  If  you  aro  re-entering  these  notes  upon  a  new  page,  "  carry  forward"  will  be  the  proper  expression. 


49 


R  A 
Of  THE 

VNIYERSITY 


BILLS 


SATX  OF 

ACCEPTANCE. 

KO. 

drawer's  name. 

IN  WHOSE  FAVOE. 

ON  WHAT  ACCOUNT, 

• 

TIME  TO  RDN. 

1866. 

Nov. 

1^ 

1 

Myself, 

A.  Stuart  &  Co., 

Merchandise, 

60  days. 

1867. 

Jan. 

3 

2 

Taylor  on  Myself, 

Ryan  &  Dale, 

//    .^ 

10  days. 

15i 

3 

Myself, 

W.  Bayard  &  Co., 

// 

1  month. 

15  i 

4 

// 

Capt.  W.  Rivers, 

Ship  Hudson, 

3  months. 

31 ; 

5 

ff 

W.  Morris, 

His  Note, 

30  days. 

1 

G 

If 

J.  Warden, 

His  Note, 

30  days. 

Feb. 

i! 

7 

" 

U.  States, 

Merchandise, 

3  months. 

8 

II 

// 

// 

6  months. 

9 

II 

// 

Morris's  Goods, 

3  months. 

10 

II 

" 

// 

6  months. 

20! 

11 

Morris,  on  Myself, 

R.  Banks, 

R.  Morris, 

10  days'  s'gt 

Mar. 

4 

12 

Myself, 

W.  Hay, 

Insurance  of  ship  Roscoe, 

4  months. 

Apr. 

5 

18 

// 

W.  Morris, 

Shipment  to  Liverpool, 

30  days. 

1 
! 

14 

II 

// 

R.  Morris's  Ship't  to  Bost. 

30  days. 

10 

15 

Taylor,  on  Sydney, 

S.  Coates, 

Honor  of  J.  Taylor  &  Co., 

10  days. 

16 

Myself, 

J.  Walker, 

Insurance  2d  Co.  Ship't, 

3  months. 

20 

17 

// 

U.  States, 

Duties  2d  Co.  Sales, 

6  months. 

May 

31 1 

18 

» 

Wm.  Hay, 

Insurance  for  R.  Morris, 

2  months. 

June 

1867. 

18 
1 

19 

1 
8 

'/ 

Warden  &  Bell, 

Purchase  of  Flour, 

60  days. 

Feb. 

Myself, 

U.  States, 

Merchandise, 

6  months. 

10 

// 

II 

Morris's  Groods, 

6  months. 

Mar. 

4 

12 

// 

W.  Hay, 

Insurance  of  ship  Roscoe, 

4  months. 

Apr. 

10 

16 

" 

J.  Walker, 

Insurance  2d  Co.  Ship't, 

3  months. 

20 

|17 

// 

U.  States, 

Duties  2d  Co.  Sales, 

6  months. 

June 

18; 

19 

i 

// 

AYarden  &  Bell, 

• 

Purchase  of  Flour, 

60  days. 

Note. — The  directions  respecting  the  Bills  Receivable  Book  apply  in  all  respects  to  this  book. 

The  notes  "carried  down"  are  the  notes  we  liave  out  unpaid,  and,  like  the  other  Bill  Book,  must  agree  with  the  balance  or  ita 
representative  in  the  Ledger,  at  the  time  of  balancing. 


50 


PAYABLE. 


WHIN  DUE. 


I    1 

lie 
I 

il6 


18 


4  I  6 


18 


7  ;  8 


23 


13 


9  j  10  1 11 1  32 


3 

20 


7 
13 


20 


23 


23 


300 

1000 
1600 
8000 

800 

6001 
1111111 

mill 
iiiiiii 
iiiilii 

2500  j 

400 

16145 
4125 

601 

1451 
30001 

112J30 
11601 

44 

TTlTiT 
1111111 

400^ 

145 

3000; 

1160 


24865 


1867. 


Jan. 


Feb. 
Apr. 
Mar. 

May 

June 
May 
June 
Mar. 
June 
May 

Apr 

June 
June 
June 
June 


16 

18 

22 

4 

4 
30 

4 
30 

5 
30 

8 

23 

30 
30 
18 

30 


AXl    HOW   PAID. 


Pd.  City  Bank, 

//  It 

Pd.  in  Cash  and  Mdse., 
Pd.  in  Cash  and  Mdse., 
Pd.  in  City  Bank, 
Pd.  in  Merchants'  Bk., 
Pd.  the  Custom  House, 
Carried  down, 
Pd.  the  Custom  .House, 
Carried  down, 
Pd.  in  Mdse., 
Carried  down, 
Pd.  in  Cash, 

Do. 
Pd.  in  Cash, 
Carried  down, 

Do.     Do. 
Pd.  Insurance  Co., 
Carried  down, 


I 


300 

1000 
1600 
8000 

800 

600 

mill 

1111:1: 
1111  ill 

1111111 

2500  j 

400; 

161  45 

4125 
601 
145  i 

3000, 
112  30 

1160! 

486544 


51 


SET  II.— DOUBLE   ENTRY   BOOK-KEEPING. 


CONCLUDING  REMARKS  ON  THE  BILL  BOOKS. 

1.  All  practical  accountants  who  have  seen  the  principle  upon  which  I  have  kept  the 
Bill  Books  have  given  it  their  unqualified  approbation.  In  the  operations  of  some  houses, 
the  Bill  account  is  nearly  as  heavy  and  voluminous  as  the  Cash  account,  and  there  is  no 
way  in  which  accuracy  can  be  so  easily  preserved  or  errors  so  readily  found  as  upon  the 
principle  of  balancing  these  books  like  the  Cash  Book.  In  a  business  where  any  consider- 
able number  of  bills  or  notes  are  received  or  given,  this  precaution  appears  to  me  almost 
indispensable  for  maintaining  harmony  between  these  books  and  their  representatives  in 
the  Ledger. 

2.  Although  I  have  here  only  balanced  them  once, — at  the  time  of  closing  the  Ledger, 
— yet,  in  a  business  of  any  magnitude,  it  will  be  advisable  to  do  so  much  oftener,  at  the 
same  time  balancing  their  representatives  in  the  Ledger,  or  at  least  seeing  that  they  con- 
form to  these  books,  and  also  to  the  amount  of  Bills  and  acceptances  in  hand.  Any  dis- 
crepancy in  this  particular  is  a  conclusive  proof  of  error  existing  somewhere,  which  must 
be  found  out  and  rectified  before  you  go  farther.  You  will  notice  that  those  notes  which 
have  been  renewed  at  the  face — see  Wallace's  note.  No.  15 — are  not  passed  into  the  Ledger, 
neither  are  accommodation  notes,  such  as  that  of  William  Hay's  on  the  26th  June.  You 
will  not  therefore  expect  the  account  in  the  Ledger  to  add  up  the  same  as  this  Book ;  but 
if  every  thing  is  correct  it  will  conform  to  it  in  the  balance.  Cross  accommodation  bills, 
like  Bills  Beceivable  No.  7  and  8,  where  you  have  given  a  consideration  for  them — your 
own  notes — must  of  course  appear  on  your  Bill  Book  like  any  other  note. 

Another  species  of  accommodation  is  when  you  grant  your  signature  as  security  upon  a 
note  or  acceptance  without  any  consideration,  as  in  the  case  of  Hay's  note — see  Bills  Be- 
ceivable, June  26.  I  have  recommended  the  entry  of  all  such  notes  with  their  particulars 
and  amounts  in  Red  Ink.  Such  a  practice  may  make  the  Bill  Book  a  useful  monitor  to 
those  who  do  much  of  this  kind  of  business. 

3.  I  have  before  given  directions — Note  3,  p.  49 — respecting  the  payment  of  notes  by 
instalments.  The  prevailing  practice  is  to  credit  the  Bill  account  with  every  instalment, 
however  trifling,  endorsing  it  at  the  same  .time  upon  the  note.  Notwithstanding  its  long 
established  general  usage,  this  practice  is  often  attended  with  great  inconvenience  to  the 
Book-keeper.  A  more  fruitful  source  of  confusion  could  hardly  be  devised.  After  getting 
a  number  of  these  partial  payments  upon  difi'ereut  notes  posted  to  the  account,  in  any 
attempt  to  trace  out  errors  afterwards,  it  will  be  found  a  perfect  labyrinth. 

4.  When  a  note  is  overdue,  it  ought  either  to  be  renewed  or  charged  to  the  promisor  in 
book  account,  and  as  he  makes  payments  upon  it  pass  them  to  his  credit.  Those  who  have 
been  pursuing  a  different  course  will  risk  nothing  by  giving  what  I  here  suggest  a  trial.    • 

52 


SET  II.— DOUBLE   ENTRY   BOOK-KEEPING. 


THE  CASH  BOOK. 


INTRODUCTORY    REMARKS. 

This  book  ^  is  kept  for  the  purpose  of  ascertaining  every  evening,  or  as  often  as  is  neces- 
sary, tliat  all  money  received  and  paid  has  been  kept  account  of^ 

This  is  done  by  debiting  this  account  for  ^all  money  received,  hence  we  find  by  the  Dr. 
side  the  total  amount  received.  When  'money  is  paid  out  we  credit  this  account,  and 
thereby  find  by  the  credit  side  the  total  amount  paid  away.  *And  the  difierence  between 
the  amount  paid  away  and  the  amount  received  must  be  the  balance  in  hand.  When  the 
money  in  hand  is  counted  it  must  agree  with  °the  balance  as  shown  by  this  book.  Any 
difference  is  conclusive  proof  of  error,  which  should  be  immediately  sought  Dut  and  an 
entry  made  to  rectify  it. 

All  cash  transactions  are  generally  first  entered  ^upon  this  book,  and  afterwards  trans- 
ferred to  the  Day  Book,  when  Uhey  are  marked  off  this  book  upon  the  left  hand  side  of  the 
money  column  thus  j/.  But  there  is  no  objection  to  making  the  entry  occasionally  first  on 
the  Day  Rook  and  the  collateral  entry  afterwards  on  this  book. 

As  the  Cash  Book  is  generally  referred  to  ^as  the  book  of  original  entry  for  all  such 
transactions  as  are  entered  upon  it,  great  care  is  necessary  in  making  these  entries.  *  They 
should  be  made  in  such  a  manner  as  will  enable  any  one  afterwards  to  determine  what 
account  was  intended  to  be  debited  -or  credited  for  the  money  paid  or  received.  For  this 
purpose  accountants  adopt  the  following  Rule  : 

When  money  is  received,  ^^  write  the  name  of  the  account  to  be  credited  for  it,  next  the 
date  column  on  the  left  side, — the  words  of  explanation  on  the  same  line  a  little  to  the 
right. 

When  money  is  paid  away,  "  write  the  name  of  the  account  to  be  debited  for  it,  next 
the  date  column  on  the  right  side, — the  words  of  explanation  on  the  same  line  a  little  to  the 
right. 

The  Ledger  titles  are  by  this  means  kept  in  a  perpendicular  column,  separated  by  a  slight 
space  from  the  explanatory  words — refer  to  our  cash  book  and  see.  By  this  arrangement 
no  doubt  can  afterwards  arise  as  to  what  accounts  were  intended  to  be  debited  or  credited. 
And  it  adds  much  to  the  appearance  of  the  book  to  begin  these  words  of  explanation  all 
upon  a  perpendicular  line,  either  by  a  fold  in  the  paper  or  a  pencil  line.  ^^  Every  thing 
except  the  dates  and  names  of  accounts  must  be  kept  to  the  right  of  this  line. 

Nothing  shows  a  man's  ignorance  of  accounts  more  effectually  than  beginning  his  entries 
here  with  the  title  of  the  book  "  To  Cash"  or  ''  By  Cash."  Nothing  but  cash  is  entered 
here,  and  that  title  is  never  written  in  the  book  except  in  the  heading  of  it. 

The  Bank  account,  check-book,  &c.,  are  exemplified  in  the  second  part  of  this  work. 

Teacher's  Examination. — 1.  For  Avhat  purpose  is  the  Cash  Book  kept? 

2.  What  is  placed  to  the  Dr.  side? 

3.  What  to  the  credit  side? 

4.  How  do  we  ascertain  the  balance  in  hand? 

5.  What  must  the  money  in  hand  agree  with? 

6.  Where  are  all  cash  transactions  generally  first  entered? 

7.  What  is  done  with  them  when  they  are  entered  in  Che  Dpy  Book? 

8.  For  what  purpose  is  the  Cash  Book  generally  referred  to? 

9.  How  should  entries  be  made  on  this  book  ? 

10.  How  is  money  received  to  be  entered? 

11.  How  money  paid? 

12.  What  is  kept  to  the  right  of  the  perpendicular  line  spoken  of? 

53 


J;r. 


CA.SH 


To  Stock 
Mdse. 

James  Carter 
House  44  Broadway 
Bills  ReceivaWe 
Wm.  Hay 
Bills  Payable 


For  Bal.  on  hand,  per  Ledger  A,  fol.  2 
Bec'd  for  sale  to  A.  Stuart  &  Co. 
Bec'd  amount  of  his  %  in  full 
Bec'd  of  Carver  a  quarter's  rent 
Bec'd  of  Banks  on  <%  of  his  note 
Bec'd  on  % 
Bec'd  n/p.  of  "Warden's  note  discounted 

10906.70  * 
6680. 


To  Morris's  Sales 

n  Bills  Beceivablc 
II       II  II 

II  B.  Morris 

//  Commission 

//  Profit  &  Loss 

//  Bills  Beceivable 

//  Profit  &  Loss 

//  Sundries 


Bal.  bro't  down 

Bec'd  for  sale  to  J.  Lorillard 

Bec'd  n/p.  of  Morris's  note  discounted 

Bec'd  of  T.  Edwards  on  his  note 

Bec'd  n/p.  of  draft  on  Barclay 

Bec'd  for  collecting  same 

Bec'd  a  purse  found  in  the  Park 

Bec'd  for  Baker  &  Fox's  Bill       $4444. 

Bec'd  8  J  per  ct.  prem.  on  same         377. 

Bec'd  of  Warden  on  my  Bill 


7300 
300 
560 
150 
500 

1500 
596 


70 


10906    70 


40 


44 

78 


Bal.  in  hand  bro't  down 
To  Wm.  Hay  Bec'd  on  1st  Co.  account 

//   Ship  Hudson  Bec'd  for  freight 

n   Mdse.  Bec'd  of  B.  Banks 

//   Ship  Boscoe  and  Owners  Bec'd  for  freight  and  passages 
//   N.  Y.  Insurance  Office    Bec'd  in  full 
//   Estate  A.  Lenox  Bec'd  deposit  in  Manhattan  Bank 

//   Bills  Beceivable  Bec'd  on  J.  Day's  note 

II   Profit  &  Loss  Bec'd  interest  on  same 

//   Mdse.  Bec'd  of  Wm.  Hay  bal.  of  Invoice 


24661.90 
130'20. 


4226    70 

360 

796 
2000  j 
1995  1 

400  I 

I 

4822  i  22 
2810    16 


17415 


To  Bills  Beceivable 
n  Profit  &  Loss 


Bal.  bro't  down 

Bec'd  amount  of  Warden  &  Bell's  note 

Bec'd  20  days'  interest  on  same 


Forward 


6462 

2500 
1850 

255 
1800 
3690 
7500 

100 
4 

500 


24661 

11641 

2011 

6 


13659 


48 


70 


20 


90 

90 
70 


60 


•  Note.— The  learner  should  place  these  figures  in  his  manuscript  in  pencil. 

54 


ACCOUNT. 


Cr. 


3 

By  Mdse. 

16 

//   Bills  Payable 

n      II           II 

18 

If   House  44  Broadway 

2a 

//   Ship  Hudson 

30 

//           II 

1 

5 
i2 

18 


12 
16 
17 

25 
31 


15 


By  Mdse. 
//  Morris's  Sales 
//         II  If 

If         It  II 

If  Shipm't  to  New  Orleans 
//  J.  Taylor  &  Co. 
//  House  in  Broadway 
//  Profit  &  Loss 
If  B.  Morris 
II  Btlls  Payable 
If  Morris's  Sales 
//  Bills  Receivable 
//      //  // 

//  Profit  &  Loss 


Paid  M.  Hunter  &  Co.  for  Inv.  of  Flour 

Pd.  my  note  to  A.  Stuart  &  Co. 

Pd.  my  acceptance  for  Taylor  &  Co. 

Pd.  J.  Carpenter's  Bill  for  repairs 

Pd.  Capt.  Bivers  on  %  of.  purchase  money 

Pd.  disbursements 

Lai.  to  n/a.  ^-on 


Pd.  freight,  per  ^'Herald" 

Pd.       //  //  // 

Pd.  Cooperage,  &c.  on  Wines 

Pd.  freight  of  Wine  to  New  Orleans 

Pd.  freight,  per  "Jersey" 

Pd.       //  //  // 

Pd.  Insurance  $200,  Policy  U 

Pd.  Insurance  on  Mdse.  in  Store 

Pd.  on  %  of  his  Bill 

Pd.  on  my  note  to  W.  Bayard 

Pd.  R.  Banks  for  overgauged  Wine 

Pd.  J.  Bowline  on  Bottomry  Bond 

Pd.  for  Baker  &  Fox's  Bill  4444.44 

Pd.  8  rer  cent.  Prem.  on  same         355.56 
Kal.  to  n/a.  10952.78 


By  Ship  Roscoe,  my  i  Pd. 

Ship  Roscoe  and  Owners  Pd. 


//  Bills  Payable 

//      //  II 

If  Mdse. 

//  Estate  A.  Lenox 

//       If  II 

If  House  49  Cedar  Street 

//  1st  Co.  Sales 

//  Charlotte  Lenox 

//  Robert  Lenox 


Pd. 
Pd. 
Pd. 
Pd. 
Pd. 
Pd. 
Pd. 
Pd. 
Pd. 


Capt.  Manly  bal.  of  purchase 

disbursements 

my  note  favor  W.  Morris 

If      II        If     J.  Warden 
freight  of  Cotton  from  New  Orleans 
note  in  the  Manhattan  Bank 
for  Law  Expenses 
Insurance  and  Policy 
my  half  Invoice  of  Cotton 
her  on  %  of  Legacy 
him  on  %  of  Legacy 

Bal.  to 


By  Bills  Receivable 
//  Shipm't  to  Liverpool 
//  R.  Morris 
//  John  Taylor  &  Co. 
//  Sundries 


Pd.  J.  Walker  in  loan  on  his  note 

Pd.  Shipping  charges 

Pd.  charges  on  shipment  to  Boston 

Pd.  their  draft  on  S.  Wood  &  Co.  protested 

Pd.  charges  on  2d  Co.  shipm't  to  London 

1st  Co.  shipm't  to  Boston  Pd.  Shipping  charges 

Sundries  Pd.  charges  on  1st  Co.  shipm't  to  Liverpool 

Forward 


1800 
300 
1000 
280 
2100 
1200 
4220 

10906 


8^ 

167 

5 

28 

33 

11 

201 

181 

3400 

20 

21 

2000 

4800 
6462 


17415  48 


2120 
850 
800 
600 
180 

2500 

10 

160 

4500 
500 
800 

11641 

24661 


2000 

348 

20 

1204 

300 

60 

133^ 

4065  f5 


55 


8      Dr. 


OA-SH 


1867. 



— —                      

— 

Bro't  forward 

13659 

60 

Apr. 

22 

To  Bills  Keceivable 

Rec'd  amount  of  Wm.  Hay's  note 

1515 

75 

//   Profit  &  Loss 

Rec'd  interest  on  same 

8058.60 

5 

05 

-— 

7121.80 

Bal.  bro't  down 

1 

15180 

40 

w 

7121 

80 

Slay 

1 

To  House  in  Cedar  Street 

Rec'd  a  quarter's  rent 

300 

» 

//   City  Bank  Stock 

Rec'd  Dividend 

500 

If   Merchant's     // 

Rec'd         // 

250 

//   House  44  Broadway 

Rec'd  Rent 

150 

4 

//    Ship  Hudson 

Rec'd  Freight 

3500 

If   Ship  Boscoe  and  Owners  Kec'd  freight  and  passage  money 

4200 

//   Merchants'  Bank  Stock  Eec'd  of  Finlay  &  Co.  on  ^  of  sale 

500 

8 

//   R.  Morris 

Rec'd  of  Walker  bal.  on  my  Bill  of  Exch. 

4200 

13 

//   Mdse. 

Rec'd  of  J.  Walker  i  3d  Co.  Adventure 

1500 

n   2d  Co.  Sales 

Rec'd  on  %  of  sale  to  Warden  &  Bell^ 
Rec'd  of  Austin  &  Co.  on  Sales  at  Auction 

1640 

18 

If        If           If 

560 

If   Profit  &  Loss 

Rec'd  of  W.  Wallace,  for  interest 

18 

9C 

25 

//   Bills  Receivable 

Rec'd  for  Warden  &  Co.'s  draft  on  Landis 

7000 

//   Profit  &  Loss 

Rec'd  1  per  ct.  prem.  on  the  same         ^272492 

70 

28785.78 

Bal  bro't  down 

31510 

70 

28785 

78 

June 

12 

To  Bills  Receivable 

Rec'd  of  Warden  &  Bell,  for  their  note 

2100 

18 

;/       //              n 

Rec'd  of  J.  Walker  bal.  due  on  note 

568 

If   R.  Morris 

Rec'd  Insurance  for  loss  per  "Columbia" 

36901.48 

5452 

70 

_- — ■ 8891. 

36901 

48 

! 

' 

Bal.  bro't  down 

««91 

DIRECTIONS    FOR    RULINQ. 

1.  What  are  the  lines  called  footing  lines? 

2.  How  are  they  drawn  under  the  longest  column  ? 

3.  How  are  they  drawn  upon  the  other  side,  where  there  is  a  blank  space  in  the  money  column  ? 
'4.  What  are  the  closing  lines,  and  what  is  the  use  of  them  ? 

5.  Where  are  they  drawn  ? 

6.  How  far  do  you  bring  the  balance  below  the  closing  line,  and  what  must  this  balance  agree 

with? 
The  author  has  been  thus  precise  in  his  directions  in  this  matter,  hoping  thereby  to  inspire 
his  learners  with  an  early  taste  for  neatness  and  uniformity  in  a  matter  which  contributes  so 
much  to  the  appearance  of  their  books,  and  which  is  of  more  importance  in  preserving  accu- 
•racy  and  order  than  many  persons  imagine. 

The  directions  here  given  apply  to  the  Ledger,  and  all  other  books  upon  which  balances  are 
struck. 

56 


A-OCOUIS^T. 


Or.      tB 


1867. 


Apr. 


May 


June 


20 
22 
23 


4 

8 
31 


12 

18 

25 

28 
30 


By  2d  Co.  Sales 
//   Sundries 
//   Bills  Payable 


By  Bills  Payable 
//      //  // 

//   R.  Morris 


ByR.  Morris 

w  Warden  &  Bell 

//  Bills  Eeceivable 
//       //  // 

//  1st  Co.  Sales 

//  House  49  Cedar  Street 

'/  Profit  &  Loss 


Bro't  forward 

Paid  Freight,  &c.  per  "■  Vixen" 

Pd.  on  my  note  to  Capt.  Rivers 

Pd.  my  acceptance  for  honor  of  Taylor  &  Co. 

Bal.  to  D/a.  ^^^-^^ 


Pd.  my  bonds  in  the  Custom  House 
Pd.  my  notes  to  the  Insurance  Office 
Pd.  charges  on  shipment  per  "  Columbia" 
Bal.  to  n/a.  ="^-«' 


Pd.  for  Bank's  BiU  of  Exchange 
Pd.  them  on  % 

Pd.  for  J.  Post's  Bill  on  London 
Pd.  for  Sugars  sold  to  Gr.  Barron 
Pd.  Wm.  Hay  his  half  net  proceeds 
Pd.  Carpenter  &  Co.'s  Bill  of  Repairs 
Pd.  Expenses  1st  Jan'y  to  date 

Bal.  to  n/a.  "* 


4065 

55 

185 

3207 

05 

601 

7121 

80 

15180 

40 

2222 

22 

203 

70 

300 

28785 

78 

31510 

70 

7200 

~ 

10000 

1660 

800 

6971 

25 

280 

1099 

23 

8891 

36901 

48 

D. 


The  footing  lines  are  those  drawn  under  the  amounts  before  adding  up. 

They  are  drawn  close  under  the  foot  of  the  column. 

Directly  opposite  the  line  footing  the  longest  column,  touching  the  same  line  lightly  inside 

the  date  column. 
The  closing  lines  are  those  drawn  after  the  columns  are  added  up,  to  keep  the  old  account 

separate  from  the  new  account. 
They  are  always  drawn  on  the  first  faint  line  below  the  figures,  touching  it  lightly  inside 

the  date  columns,  and  doubling  across  the  money  columns,  but  never  running  through 

the  date  columns. 
The  balance  brought  down  always  occupies  the  first  faint  line  below  the  closing  line,  and 

it  must  always  agree  with  the  cash  in  hand  and  the  balance  of  the  cash  account  in  the 

Ledger. 


57 


SET  II.— DOUBLE   ENTRY  BOOK-KEEPING. 


THE    INVOICE    BOOK. 


PRELIMINARY  REMARKS. 

In  this  book  ^  we  enter  copies  or  abstracts  of  all  invoices  of  goods  received  on  our  ow/i 
account,  on  account  of  others,  and  on  account  of  ourselves  and  others  in  company. 

This  is  the  general  practice  among  merchants,  but  the  author  has  found  it  more  con- 
venieut  in  extensive  business  ^  to  paste  the  original  invoices  into  a  book  made  of  some 
description  of  paper  of  a  larger  size  than  the  invoices.  By  means  of  an  index  to  this 
bookj  it  will  be  found  more  convenient  to  refer  to  the  original  invoices  than  by  seeking 
them  from  files. 

The  first  entry  of  an  invoice  '  may  be  either  here  or  on  the  Day  Book,  but  when  it  is 
entered  on  the  Day  Book,  each  entry  should  be  marked  off"  this  book  as  we  have  done  on 
the  following  page. 

Exporters  sometimes  use  an  "Invoice  outward  book,^^  but  we  have  shown  that 
nvoices  of  this  kind  as  well  as  inland  invoices  may  be  entered  on  the  Sales  Book. 

The  particulars  of  an  invoice  need  not  be  entered  on  the  Day  Book.  *  The  amount  only 
Is  required. 

We  have  not  considered  it  necessary  to  extend  this  book  through  the  whole  set;  most 
learners  will  easily  learn  its  nature  and  use  from  these  remarks.  It  will  seldom  be  necessary 
to  transcribe  the  book. 

As  far  as  our  exemplification  of  this  book  extends,  the  learner  will  find  its  examples  all 
in  connexion  with  the  Day  Book. 


1.  What  is  the  use  of  thia  hook? 

2.  How  may  invoices  be  most  conveniently  kept  for  reference? 

3.  Where  is  tlie  first  entry  of  an  invoice  to  be  made? 

4.  How  is  an  invoice  to  be  entered  upon  the  Day  Book  ? 

58 


Inventory  of  Merchandise  on  hand  December  31,  1866. 


D.  B.  1.    |300  pieces  best  4-4  London  Chintz  Prints 
100      //         //     27  inch  Furniture  Prints 
j     8      //       French  Cambric  Handkerchiefs 
India  Pongees    .         .  •      . 


100 
50 
50 
20  Canton  Crape  Shawls   . 


(f  ,     Figured 
Bandannas 


@$  4. 
@$  3. 
@$10. 
@$  6. 
@S  7. 
@$  7. 


1200. 
300. 
80. 
600. 
350. 
350. 
120.' 


j  Invoice  of  24  Bales  Cotton  shipped  by  J.  Taylor  &  Co.  on  board 
Ithe  Brig  Jersey,  Spencer,  Master,  for  New  York,  and  consigned  to 
P.  Duff,  Merchant,  by  his  order  and  for  his  account  and  risk. 


1.450 
2.400 
3.410 


4.420 
5.430 
6.500 


7.390  10.410 
8.380  11.450 
9.410    12.500 


13.  560  16.  580  19.  550  22.  510 
14.540  17.500  20.590  23.540 
15.  520   18.  500   21,  500   24.  560 


1260+1350+1180  +  1360  +  1620  +  1580  +  1640  +  1610 


=  11600, 


CHARGES. 


Commission  purchasing  S928  @  2J  per  cent. 


Cartage,  &c. 

Freight  and  Insurance 

E.  E.  New  Orleans,  | 
Dec.  10,  1866.       J 


8  cents. 


.  $23.20 

.       1.80 

47. 


J.  Taylor  &  Co. 


Mr.  p.  Duff, 


New  York,  Jan.  3,  1867. 

Bo't  of  Martin  Hunter  &  Co. 

400  bbls.  Superfine  Flour .  @  $4.50 

Rec'd  Payment, 

Martin  Hunter  &  Co. 
Per  J.  Manly. 


Mr.  p. 

No.  1444. 
//  1448. 
//  1450. 

tt  2280. 
D.  F. 
F. 


Duff, 

Bo't  of  Walter  Bayard  &  Co. 
1  ps.  24^ 
1   //   25?    * 
1   //    19? 

—  70  yds.  Super  Wool  Black  Broadcloth,  @$  8. 

1  If    25  yds.  Super  Blue  Broadcloth       .         .    //       8. 

2  //    finest  Saxon  Flannel      .         .         .         .    //     20. 


80   It    Common 


/'     10. 


New  York, 

January  15,  1867. 


Rec'd  Payment, 

By  Note  @  1  month, 

Walter  Bayard  &  Co. 


3000 


928 


72 
1000 


1800 


560 

200 

40 

_8J)0 

1600 


59 


2        Mr.  P.  DUFF, 


Bought  of  JAMES   CARTER. 


1  ps.  20?  yds.  Super  Black  Broadcloth   . 

1    //    20?    //         //      Brown         // 

1  Dress  Coat        .         .         .         .         . 

New  York,  Jan.  20,  1867. 


^5.     102.50 
4.       83. 
14.50 


Mr.  p.  Burr, 

Bo't  of  C.  Banks, 

100  bbls.  Genesee  Superfine  Flour @  $5. 

Bec'd  Payment  by  my  note  due  this  day, 

C.  Banks. 
New  York,  Jan.  24,  1867. 
It 


Invoice  of  Merchandise  shipped  by  R.  Morris  on  board  the  Ship 
Herald,  Chase,  Master,  for  New  York,  by  order  and  for  account  and 
risk  of  P.  Duflf,  merchant  there. 
4  Packages,  No.  1  to  4. 

No.  1,  containing    50  pieces,  3000  yds..  Figured  Satins  .  @    5s 
2,         //  600      //       Rolled  Jaconets  .         .    //     5s. 

600      //       Fancy  2-color  Fur.  Prints  .    //    10s. 
600      //  V       5-  //  //  .    //   20s. 

charges.  . 

Commission,  5  per  ct.  on  £1800     .         .         .         .         .       £90, 


II     3, 
"     4, 


Export  duty  and  entry,  £12  10s.     Cartage,  Wharfage,  and 

Lighterage,  £8  10s 

Insurance  and  Policy     ....... 


21. 


Amount  due  in  Cash  April  10th  next,  sterling 
In  Federal  currency,  $8888.88 
London,  Dec.  30,  1866.                                       R.  Morris. 
II 


Invoice  of  30  Pipes  Port  Wine,  shipped  by  R.  Morris  on  board 
the  Ship  Herald,  Chase,  Master,  for  New  York,  consigned  to  P.  Duff, 
merchant  there,  for  sale  on  account  of  the  shipper. 

30  Pipes,  3600  galls.,  Best  Old  Port         .         .  @  10s.     £1800. 

CHARGES. 


Export  duty,  entry,  &c.,  £44  10s.    Cjirtage  and 

Wharfage,  £11  10s £56. 

Insurance  and  Policy 96. 

Cooperage,  Lighterage,  &c 48.          200. 

London,  Dec.  30,  1866. 

£2000. 
.  R.  Morris. 
n 

Mr.  p.  Duff, 

(Terms,  3  mos.)                                                                          Bo't  of   WiLLIAM    HaY, 

20  ps.  400  yds.  10-4  Damask  Table  Linens,     .         .  @  $3.     $1200. 

4  //     54?  //     12-4        //          II          II           .         .   //     4.         218. 

3  //     40?  //      8-4        //          II          II           .         .   //     2.           81. 

Packing-box      ......                1. 

New  York,  Feb.  12,  1867.                                                      

II 

Mr.  p.  Duff, 

200  bbls.  Genesee  Flour      . 
New  York,  Feb.  18,  1867. 


Bo't  of  T.  Edwards, 


Col  $5. 


200 


500 


£750 
150 
300 
600 


200 


£2000 


1500 


1000 


60 


Inventory  of  Merchandise  on  hand  June  30,  1867. 


2423  Barrels  Flour 

6  Pieces,  240  yds.,  Brussels  Carpet 
70       II       Merrimac  Prints, 

//  Furniture    . 


40 
420 
365 

8 
1 
1 


English  Prints    . 

//        Furniture 
161  yds.  Fine  Broadcloth 
Fine  Saxon  Flannel     . 
Scarlet         n 

Entered  Ledger,  folio  1. 


5. 

12115 

1.50 

360 

O. 

210 

4. 

160 

5. 

2100 

6. 

2190 

0. 

966 

11 

, 

15 

1R128 

62 
60 


CONCLUDING    REMARKS. 

1.  In  business  the  Inventory  generally  makes  a  pretty  long  document,  hut  the  above  will 
sufficiently  explain  its  nature,  and  a  reference  to  it  will  serve  to  explain  the  balancing  of  the 
merchandise  account  in  the  Ledger. 

2.  Teachers  who  use  treatises  on  Book-keeping  which  give  no  example  of  the  inventory 
of  the  merchandise  on  hand  at  the  opening  and  closing  of  the  Ledger,  will  find  it  a  difficult 
task  to  make  the  closing  of  the  merchandise  account  fully  understood.  A  learner  who  has 
never  seen  an  inventory,  will  form  so  vague  an  idea  of  it  from  a  mere  verbal  description, 
that  he  will  probably  forget  even  the  name  of  it  before  he  has  balanced  his  account.  But 
give  him  an  exemplification  of  it,  and  he  will  ask  no  more  questions  about  it. 

3.  I  would  suggest  that  the  inventory  be  always  taken  as  near  the  cost  and  charges  of  the 
goods  as  possible.  Having  it  upon  this  principle  enables  us,  as  we  have  shown, — Note  15, 
page  36 — to  ascertain  the  average  gain  per  cent,  upon  the  amount  or  goods  sold,  which 
is  at  all  times  an  important  matter  for  the  merchant  to  know.  But  I  shall  perhaps  be  told 
that  taking  the  inventory  upon  this  principle  will,  in  some  instances,  produce  a  false  result 
in  the  balance  sheet.  I  admit  that  in  some  cases  it  will.  But  take  it  upon  any  principle 
you  please,  and  it  is  only  an  estimated  value.  The  actual  value  can  only  be  determined  by 
sale :  and  as  a  general  rule  the  cost  and  charges  form  a  pretty  correct  estimate  for  the  bal- 
ance sheet.  But  if  circumstances  render  it  necessary  to  deviate  from  this  rule  of  estimate, 
I  would  still,  for  the  purpose  above  referred  to,  take  the  account  upon  the  same  principle, 
and  afterwards  let  an  estimated  deduction  or  addition  be  made  to  it  for  the  balance  sheet. 

4.  On  the  last  page  there  are  two  invoices  from  Morris.  The  first  is  on  our  own  a<;count, 
and  the  second  on  consignment.  The  learner  will  perceive  from  this  that  there  is  not,  in 
general,  any  use  for  a  Commission  Invoice  Book.  Such  a  book  is  only  required  in  a 
few  of  the  most  extensive  commission  houses.  All  invoices  of  goods  received  may  be 
entered  upon  this  book.     AYhen  the  business  is  extensive,  an  index  will  be  found  useful 


61 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


THE   SALES   BOOK. 


PRELIMINARY   REMARKS. 

The  purpose  of  keeping  this  book  ^  is  to  avoid  entering  the  particulars  of  long  invoices 
upon  the  Day  Book. 

In  extensive  business  the  full  particulars  of  every  sale  ^  are  first  entered  on  this  book, 
and  the  amount  afterwards  transferred  to  the  Day  Book,  when  it  is  marked  off  this  book  as 
we  have  done  on  the  next  page. 

By  referring  to  our  entry  of  the  12th  February,  it  will  be  seen  that  invoices  outward  may 
be  entered  here  as  well  as  inland  ones. 

In  a  limited  business  the  '  Day  Book  serves  for  entering  all  sales  upon  :  in  this  case  the 
Sales  Book  is  dispensed  with. 

The  following  exemplification  extends  only  through  two  months  of  our  Day  Book.  But 
this  will  be  found  quite  sufiicient  to  explain  its  use,  and  it  is  so  easily  understood  that  the 
learner  will  hardly  find  it  necessary  to  transcribe  it. 

In  a  very  extensive  business  there  is  often  a  Sales  Book  required  in  each  department,  in 
which  the  salesman  in  that  department  enters  all  his  sales.  Prom  hence  it  is  transferred 
afterwards  to  the  Day  Book  or  to  the  Journal  by  the  book-keeper. 

It  may  be  proper  to  observe  here  that  the  Journal  may  be  composed  direct  from  the  aux- 
iliaries without  passing  the  entries  into  the  Day  Book.  By  this  course  a  considerable 
amount  of  writing  is  saved.  But  the  author  will  not  attempt  the  explanation  of  that 
method  of  journalizing  in  this  Set,  the  object  of  which  is  to  make  the  principles  of  the 
science  thoroughly  understood  by  the  simplest  and  most  efiicient  plan  of  teaching,  leaving 
details  that  would  embarrass  the  learner  and  hinder  his  teacher  to  be  explained  hereafter. 

Persons  who  are  unacquainted  with  the  labors  of  the  class-room,  generally  form  but  an 
imperfect  idea  of  the  nature  of  the  teacher's  task  in  first  inducting  the  uninitiated  pupil 
into  the  science  of  accounts.  It  is  sufficiently  difficult  when  the  entries  are  all  arranged 
for  journalizing  in  the  Day  Book,  but  let  the  pupil's  attention  be  divided  between  the  Day 
Book  and  some  five  or  six  auxiliaries,  and  the  matter  becomes  infinitely  more  difficult  and 
perplexing.  AVe  have  tried  this  plan  of  teaching.  These  remarks  are  therefore  dictated 
by  experience. 

This  plan  of  journalizing  will,  however,  be  found  fully  explained  in  the  second  part  of 
this  work,  where,  after  having  fully  mastered  the  principles  of  the  science,  the  pupil  can 
understand  and  apply  them  with  all  desirable  ease. 

1.  What  is  the  object  for  keeping  the  Sales  Book? 

2.  When  this  book  is  kept,  wliere  are  the  particulars  of  each  sale  first  entered? 

3.  When  no  Sales  Book  is  kept,  whore  are  the  particulars  of  tlie  sales  first  entered  ? 

62 


NEW  YORK,  January  3,  1867. 


D.B.I. 


J).B.  1. 


D.B.I. 


D.B.I. 


D.B.I. 


Sold  A.  Stuart  &  Co.,  for  Cash— 
20  pieces  London  Prints 
10      //       plain  Pongees 
10      II       fiirured     . 


yo. 


10 


Merrimac  Prints 


@^9. 
@  $3. 


100 

80. 
90. 
30. 


=====     10. 
Sold  Thomas  Edwards,  on  his  note  ( 
400  barrels  Flour    . 
200  pieces  London  prints 


30  days— 


@$5. 


2000. 
1000. 


Sold  James  Carter,  on  account — 
3  hhds.  Sugar,  viz.  1204, 1196, 1100  =  3500ib. 

Tare  10  per  ct.    .         .         .         350     31501b  @  8c.  252. 
50  pieces  Merrimac  Prints         ..... 

— =r=z== ^  15.        ==:===. 


$4.  200. 


Sold  Henry  Pryor,  in  payment  for  James  Carter's  order  on  me- 


6  pieces  Flannel 

2  yards  fine  Broad  Cloth 


$15. 


90. 

18. 


16. 


Sold  James  Carter,  on  account — 
100  barrels  Flour    . 
10       //       Corn  Meal     . 
15       //       Rye      n 
5       // 


Herring 


S5. 
S3. 
$3. 

S5. 


500. 
30. 
45. 
25. 


19. 


D.  B.  2. 


D.  B.  2. 


Sold  James  Carter,  on  account — 
4  pieces  fine  Blue  Broad  Cloth,  19?,  20,  20?,  20  =  80  yds.,  @  $5. 

.- ....=:==.  20.         .-..=====.===.^.=====:rr:= 

Sold  Capt.  Rivers,  in  part  payment  of  the  Ship  Hudson — 
240  barrels  Genesee  S.  F.  Flour  .         .         .         .     $5. 
60  hhds.  N.  0.  Sugars,  71,lllib 

Less  Tare  10  perct.  7,111        Net  64,0001b  @  6}, 
10  chests  H.  S.  Tea        .       ~         Net  lOOOtb  @  70, 
^= r^^^r^^ — ^  reb»12.      =======:= 


1200. 

4000. 

700. 


J.  T.  & 

Co. 


Invoice  of  Cloths,  Silks,  &c.,  shipped  on  board  the  Brig  Jersey, 

Spencer,  master,  for  New  Orleans.    Consigned  to  J.  Taylor  &  Co., 

for  sale  on  my  account — • 

'^O  pieces,  1200  yds..  Figured  Satins  .         .     @  $1.50 

_ 


20 
4 
3 


80? 
160 
400 

54? 

40? 


Figured  Satins 
Best  Black  Cassimere 
II  S.  W.  Black  Broad  Cloth 
//  10-4  Damask  Table  Linen 
II     12-4        //  II         II 

II       8-4  '     II  II        II 

— CHARGES. 


Packing  Boxes  $4.50,  Cartage  $1 
Freight  and  Insurance 


$5.50 
27.50 


$1800. 

161. 

800. 

1200. 

218. 

81. 

4260" 
33. 


E.  E.  New  York 
12th  Feb.,  1867 


■■) 


P.  Duff 


300 


3000 


452 


108 


600 


400 


5900 


4293 


63 


Invoice  of  Tea  shipped  by  tlie  Brig  Jersey,  Spencer,  master,  for  New  Orleans,  by  order 

and  for  account  and  risk  of  J.  Taylor  &  Co.,  and  to  them  consigned. 
2 


J.  T.  & 
Co. 


10  chests  H.  S.  Tea,  wt. 
Tare    . 


9151b. 

115      Net  8001b  @  75 


CHARGES, 


Cash  Paid  Freight  and  Cartage    .         .         .         .     $11. 

Comm'n  5  per  cent,  on  8600        .         .         .30. 

Comm'n  i  per  cent,  for  effecting  Insurance     3^      33.       _ 

E.  E.  New  York,  ") 
12th  Feb.,  1867.   j  P.  Dufp. 


44. 


18. 


Sold  R.  Banks,  in  part  payment  of  R.  Morris's  draft  on  mc  in  his 

favor — 
40  barrels  S.  F.  Flour         .         .         .         .         .         .     @  $5. 


644 


Sold  W.  Bayard  &  Co.,  in  part  payment  of  my  note  due  this  day- 
100  barrels  fine  Flour @  $5. 


28. 


The  following  articles  were  destroyed  by  fire  in  my  store  in  Front 

Street,  yesterday : — 

100  barrels  Corn  Meal Cost  S3.  300. 

200       //       Rye  Flour //     $3.  600. 

300       //        Wheat //     $4.  1200. 

Amount  of  Damages  upon  Sugars  and  other  goods, 

agreed  upon  by  the  appraisers         ...                  .  1590. 
Amount  claimed  upon  my  policy,  and  admitted  by  ' 

the  Insurance  Office 


200 
500 


3690 


This  entry  marks  out  the  course  that  we  would  in  general  recommend  in  case  of  loss  by 
fire,  particularly  in  a  partial  loss.  In  some  kinds  of  business  it  is  often  found  more  difficult 
to  prove  the  loss  and  damage,  than  inexperienced  persons  generally  imagine.  Although  the 
author  has  nothing  himself  to  complain  of  in  his  past  transactions  with  insurance  offices, 
enough  has  come  under  his  notice  to  convince  him  that  the  greater  part  of  insurers  do  not 
sufficiently  study  the  terms  of  their  contract  as  embraced  in  their  policy.  Every  office  has 
a  form  of  policy  of  its  own,  and  these  forms  are  so  various,  and  sometimes  so  worded,  that 
it  is  very  difficult  to  make  out  how  you  are  to  proceed  in  case  of  loss,  or  indeed  whether 
you  can  maintain  an  action  at  all  upon  the  policy.  Unless  the  nature  and  position  of  the 
property  are  very  accurately  described,  a  part,  or  even  the  whole  of  it,  may  fall  without  the 
scope  of  the  policy;  for  every  condition  inserted  in  that  instrument,  either  in  the  printed 
proposals  or  in  writing,  ^re  parts  of  the  contract,  and  must  be  strictly  and  literally  observed. 
A  person  of  our  acquaintance  once  insured  his  goods  in  the  first  and  second  floors  of  the 
building,  the  only  parts  he  then  occupied.  He  either  did  not  notice  the  terms  of  his  policy, 
or  forgot  its  restriction  to  these  particular  parts  of  the  building,  and  afterwards  removed  a 
great  part  of  his  goods  to  the  cellar  and  the  third  floor.  A  fire  afterwards  occurred,  and 
he  could  recover  nothing  upon  his  loss  in  the  cellar  or  the  third  story.  In  another  case  the 
insurer  accepted  of  a  policy  in  which  was  inserted  the  condition,  that  in  case  of  loss  the 
money  was  not  to  be  payable  until  the  insured  produced  a  certificate  of  character  from  the 
minister  of  the  parish.  It  was  afterwards  decided  that  he  could  not  recover,  although  the 
minister  wrongfully  withheld  the  certificate ;  for  it  seems  to  be  a  settled  legal  maxim,  that 
if  you  undertake  for  the  act  of  a  stranger  you  must  see  it  done. 

Although  these  remarks  do  not  strictly  belong  to  our  subject,  yet  they  cannot  be  far  out 
of  place  in  connection  with  the  last  transaction  recorded  in  our  Sales  Book.  They  may,  at 
least,  serve  to  put  the  young  and  inexperienced  upon  their  guard  in  entering  into  these 
important  contracts. 

64 


COMMISSION    SALES   BOOK. 


INTKOBUCTORY   REMARKS. 

This  book  ^  is  only  required  in  extensive  commission  warehouses.  It  is  kept  in  folios : 
'  to  the  Dr.  side  are  placed  the  particulars  of  all  charges  attending  the  sales:  ^  and  at  the 
Cr.  side  the  particulars  of  each  sale.  When  the  goods  are  all  sold  *  the  account  is  debited 
for  the  net  proceeds,  which  is  at  the  same  time  carried  to  the  credit  of  the  owner,  or  to  the 
credit  of  cash  if  you  pay  him  at  the  time  you  render  account  sales.  The  foim  cf  this 
account  will  be  found  among  the  mercantile  forms — p.  117. 

All  the  entries  of  both  sides  this  book  pass  regularly  to  ^  the  Day  Book  (refer  by  the 
dates  and  see)  and  are  then  marked  off  this  book  in  the  manner  we  have  directed  in  the 
Cash  Book.— Note  7,  p.  53. 

In  a  limited  commission  business,  *  the  sales  of  each  consignment,  as  well  as  the  charges 
attending  it,  may  be  entered  at  once  upon  the  Day  Book  without  a  sales  book:  and  when 
an  account  sales  is  required  it  can  be  readily  made  out  ^  by  reference  from  the  sales  account 
in  the  Ledger  to  the  Day  Book. 

There  can  be  no  entry  of  the  invoice  of  a  consignment  upon  this  book.  That  must  be 
entered  upon  the  Invoice  Book  only.^ — See  Invoice  Book,  p.  60:  also  Rule  10,  Questions 
21  to  28. 

In  the  second  part  of  this  work  will  be  found  another  method  of  keeping  consignment 
accounts :  but  the  principle  is  essentially  the  same  as  this.  The  sales  of  Merchandise  on 
acct.  of  ourselves  and  others  in  company  is  kept  also  upon  this  book  *  in  all  respects  as  we 
have  just  described  for  the  sales  of  others. 

The  Order  Book  is  used  for  entering  orders  received  for  goods.  It  is  so  simple  that  I 
have  not  considered  it  necessary  to  give  an  exemplification  of  it. 

The  Expense  Book,  as  also  an  improved  form  of  Check  Book,  will  be  found  in  the 
second  part  of  this  work. 


TEACHERS  EXAMINATION. 


1.  When  is  this  book  required  ? 

2.  What  is  placed  to  the  Dr.  side? 

3.  What  at  the  Cr.  side? 

4.  What  is  to  be  done  when  the  goods  are  all  sold? 

6.  To  what  book  are  the  entries  of  this  book  transferred? 


6.  How  may  the  sales  be  kept  in  a  limited  commission  busi- 

ness? 

7.  How  can  the  account  sales  be  made  out  in  this  case  ? 

8.  What  is  done  with  the  invoice  of  a  consignment? 

9.  How  is  the  sales  of  Merchandise  on  account  of  oursrlvM 

and  others  in  Co.  to  be  kept  ? 


65 


1   Dr. 


SALES  OF  WINES  SOLD  BY  OKDEE  AND 


1867. 

■~  " — ■■■■                    - -  ■  ■     -                   -  ■ 

— — 

— 

Feb. 

1 

^  For  my  two  bonis  passed  to  tbe  Custom  House,  viz. : 
one  at  3  months,  for       .          .         .  1111.11 

one  at  6       //          //        . 
For  Cash  paid  freight  and  primage 

.    1111.11 

2222 
167 

22 

78 

. 

5 

//       //        //     for  gauging    .... 

1 

50 

/. 

II       II        If     for  carting  and  cooperage 

3 

50 

12 

//       //        If     for  cartage,  freight,  and  insu- 
rance on  10  Pipes  Wine  consigned  to 
J.  Taylor  &  Co.,  New  Orleans     . 

28 

20 

If    Cash  refunded  R.  Banks,  6  galls,  over- 

12 

gauged  Wine  sold  18th  inst. 
//    Storage 

21 

2444 

Mar. 

3 

50 

//    Advertising  .         .         .         .  •       . 

14 

50 

//    Commission  on  $12,120,  @  5  per  cent.              ^^ 
*  n/p.  to  R.  Morris's  credit  due  by  average,  May  2* 

606 

624 
9052 

12120 

1.  We  find  the  entry  of  this  and  all  the  others  on  the 

Day  Book  by  their  respective  dates. 

2.  This  is  found  by  deducting  the  charges  from  the 

total  sales.     See  small  figures  in  the  margin. 

3.  The  entries  are  generally  first  made  here  and  after- 

wards transferred  to  the  Day  Book,  when  they  are 

marked  off  this  book  thus  ■(/  to  show  how  far  the 

transfers  have  been  made.     There  is  no  objection,  how- 

ever, to  making  the  first  entry  of  some  of  the  transac- 

tions on  the  Day  Book,  and  the  corresponding  entry 

afterwards  here. 

Sales  of  40  Bales  Brussels  Carpeting  for  the  Joint 

1867. 

Apr. 

20 

For  Bonds  passed  to  the  Custom  House  for  duties 
Paid  freight  and  primage  per  "  Vixen"       .         .   150. 

3000 

//     Insurance  against  fire,  and  policy 

.     33. 

18 

//     Cartage 

For  Storage,  $3;  Advertising,  $10     . 

.       2. 

185 

— 

3185 

May 

. 

13 

//    Commission  2i  per  cent,  on  $15874 

3594.85 

396 

85 

409 

85 

//    R.  Morris's  J  net  proceeds  is 

. 

4093 

05 

//    J.  Taylor  &  Co.'s       do. 

. 

4093 

05 

It    My                              do. 

. 

4093 

05 

12279 

15 

15874 

Note.— The  learner  will  find  forms  of  the  account  sales  of  both  the  abore 

consignments  among  the  Mercantile  Forms  at  the  end  of  the  Ledger— pp. 
117  and  118. 

*  The  rule  for  finding  this  average  time  is  given  on  the  next  page. 

66 


POE  ACCOUNT  OF  E.  MOEEIS,  LONDON. 


Cr.     1 


1867. 

Feb. 

5 

9 

(« 

12 

18 

Sold  for  cash  to  J.  Loriilard, 

1  Pipe,  120  galls.,  Port  Wine      .         .     @  $3. 
Sold  Wm.  Park  on  his  note  @  4  mos. — due  June  12, 

5  Pipes,  GOO  galls.,  Port  Wine     .         .    @  $3.50 
Sold  to  W.  Bayard  &  Co.,  as  cash,  this  day, 

3  Pipes,  360  galls.,  Port  Wine     .         .    @  $3. 
Shipped  to  New  Orleans,  per  Brig  Jersey,  and  consigned 

to  J.  Taylor  &  Co.,  for  sale  on  account  of  Morris's 

Sales,  10  Pipes  Port  Wine,  1200  galls.,  invoiced  at 

$3.50  per  gallon.* 
Sold  to  R.  Banks,  as  cash,  this  day, 

2  Pipes,  240  galls..  Port  Wine     .         .     @  83  ^^ 

360 
21C0 
1080 

840 

Mar. 

12 

Rec'd  for  n/p.  of  the  above  consignment  to  J.  Ta;yior 
&  Co.,  Barclay  &  Co.'s  Acceptance  @  60  days,  due 
May  14,  for 

Taken  to  my  own  acct.  at  market  prices,  the  remaining 
9  Pipes,  1080  galls.,  @  S3,  @  60  days,  due  May  14 

12120. 
3068. 

4500 
3240 

7740 

12120 

9052. 

__ 

TEACHER'S  EXAMINATION. 

1 

1.  How  do  3-ou  find  the  entry  of  this  upon  the  Day  Book  ? 

1 

2.  How  is  the  net  proceeds  found  ? 

3.  Are  the  entries  first  made  here  or  first  on  the  Day  Book  ? 

*  No  farther  entry  can  be  made  of  this,  it  being  a  re-consignment,  until 

returns  are  received— See  March  12. 

Account  of  E.  Morris,  J.  Taylor  &  Co.,  and  myself,  each  h 

1887. 

May 

13 

18 

Sold  to  Warden  &  Bell  for  draft  on  New  Orleans, 

120  pieces,  4250  yards,        .         .         .      @  $2. 
Net  proceeds  of  55  pieces  sold  at  Austin  &  Co.'s  auc- 

8500 

tion    

3560 

1 

Taken  to  my  own  account, 

j 

55  pieces,  1907  yards,         .         .         .      @  $2. 

__ — -      ■            ^158^4. 

3814 

7374 

"^                                         3594.85 

____^— "      "                                                      N.  P.   3)12279.15 

_____ '-'                                                                                                                     4093.05 

, 

15874 

^ 

SET  II.— DOUBLE  ENTRY  COMMISSION  SALES  BOOK. 


CONCLUDING  REMARKS  ON  CONSIGNMENTS. 

1.  As  the  average  time  upon  which  the  sales  of  a  consignment  will  fall  due  is  almost 
always  required,  the  accountant  must  be  prepared  to  work  out  the  solution  promptly  and 
accurately.  A  course  of  practical  exercises  will  be  found  hereafter  under  the  head  of 
Commercial  Calculations.  We  subjoin  the  solution  of  the  preceding  sales.  The  following 
is  the 

2.  Rule. — Multiply  each  sum  by  the  time  that  intervenes  between  its  maturity  and  that 
of  the  first  sum  due.  Divide  the  sum  of  these  products  by  the  total  amount  of  sales,  the 
quotient  is  the  equated  time  counted  forward  from  the  day  upon  which  the  first  sum 
falls  due.* 

Let  us  illustrate  this  rule  by  the  sales  on  the  last  page.  Three  days  of  grace  are  allowed 
upon  all  notes  and  acceptances,  but  no  grace  is  allowed  upon  cash  sales  or  sales  on  Book 
account. 


SOLD. 

Feb.    5. 

DUE. 

Feb.     5. 

DATS. 

$360.  X      0. 

9. 

June  12. 

2100.  X  127,=  '266.700. 

9. 

Feb.      9. 

1080.  X      4,  =        4.320. 

18. 

18. 

840.  X    13,  =      10.920. 

Mar.  12. 

May   14. 

7740.  X    98,  =    758.520. 

12,120.  )1,040,460.(86  days. 

Grives  86  days,  nearly,  to  count  forward  from  Feb.  5,  making  the  sales  fall  due  by  average 
May  2. 

Fractional  parts  of  a  day  are  never  counted,  unless  the  fraction  amounts  to  a  half  day  or 
upwards :   it  then  counts  another  day. 

3.  As  inexperienced  persons  are  apt  to  mix  up  consignments,  charges,  and  advances  upon 
the  consignments  all  into  one  account,  I  must  again  direct  particular  attention  to  llule  X., 
page  41.  I  have  there  marked  out  the  course  for  conducting  these  accounts,  sanctioned  by 
the  most  experienced  accountants.  A  regular  account  of  sales  drawn  out  upon  this  plan 
enables  the  owner  of  the  consignment  to  see  what  the  adventure  has  produced  him,  and  thus 
deteimine  at  sight  his  gain  or  loss  by  the  speculation.  This  will  not  be  shown  by  your 
account,  if  you  mix  up  advances  and  other  matters  in  it. 

4.  When  consigned  goods  are  retailed,  it  is  hardly  possible  to  keep  a  detailed  account  of 
each  sale.  You  may,  in  such  cases,  credit  the  sales  to  your  own  merchandise  account;  and 
when  the  account  sales  is  required,  the  difi'erence  between  the  quantity  received  and  the 
quantity  on  hand,  will  be  the  quantity  sold,  for  which  render  account  sales,  closing  the  sales 
account,  and  entering  on  the  Invoice  Book  the  articles  on  hand  when  this  account  was 
rendered. 

*  Proof. — Multiply  each  sum  by  the  time  that  intervenes  between  its  maturity  and  that  of  the  last  sum  falling  due.  Divide 
tlie  sum  of  these  products  by  the  whole  amount  of  sales,  the  quotient  is  the  equated  time  counting  tja.ck  from  the  day  upon 
which  the  latest  sum  falls  due. 

68 


DOUBLE  ENTRY  BOOK-KEEPING. 


DAY  BOOK  AND  JOURNAL. 

SET  II. 


PKELIMINAKY  DIRECTIONS   TO   TEACHERS   AND   LEARNERS. 

The  opening  Day  Book  entry  of  this  set  is  drawn  from  the  *  balance  account  of  the  pre- 
ci  ^ing  set.  By  referring  back  to  it,  and  attentively  comparing  it,  the  learner  cannot  fail 
to  obtain  a  distinct  conception  of  the  process  of  opening  new  books  from  old  ones, — an  ope- 
ration seldom  well  understood  by  young  book-keepers. 

He  must  also  understand  that  the  cash  in  hand  "^must  be  entered  in  the  Cash  Book. 

The  Merchandise  on  hand  ^must  be  entered  in  the  Invoice  Book. 

The  Notes  and  Bills  in  hand  *must  be  recorded  in  the  Bills  Receivable  Book. 

The  Notes  and  acceptances  he  has  outstanding  ^must  be  recorded  in  the  Bills  Payable 
Book. 

The  teacher  will  now  follow  the  directions  given  on  page  27  for  inducting  his  pupils 
thoroughly  into  the  language  and  form  of  the  journal.  Those  who  patiently  submit  to  that 
course  will  seldom  experience  any  difficulty  after  the  first  one  or  two  pages.  Students  will 
also  find  it  a  useful  exercise  to  give  verbally,  the  journal  entries  to  be  made  in  their  books 
by  each  of  the  persons  named  in  our  entries. 

As  some  business  men  require  their  journals  to  embody  brief  explanations  of  their  trans- 
actions, I  have  journalized  the  month  of  May  in  this  manner  as  a  specimen.  But  I  have 
not  given  the  whole  journal  upon  this  plan,  because,  in  his  incipient  steps,  every  thing  that 
takes  his  attention  ofi"  the  Ledger  titles  has  a  tendency  to  perplex  and  embarrass  the 
learner. 

We  have  adhered  to  that  form  of  Journal  in  most  general  use,  and  it  is  to  be  observed 
that  it  is  a  form,  the  practice  upon  which,  prepares  the  student  for  using  any  other  without 
difficulty. 

It  will  be  found  useful  to  have  some  copies  of  the  text-book  prepared  with  blank  paper 
pasted  over  all  the  Journals.  From  these  books  require  each  pupil,  in  turn,  to  journalize 
all  the  Day  Book  entries  of  the  month  upon  the  black-board,  before  writing  them  in  his 
books.  This  compels  them  to  study  each  lesson  well  mentally  before  attempting  to  write  it. 
If  the  learner  does  not  wish  to  cheat  himself  out  of  thorough  instruction,  he  should  never 
copy  any  part  of  the  printed  Journal. 


TEACHER'S  EXAMINATION. 

1.  Where  do  we  obtain  the  materials  for  opening  this  set  of   I    3.  What  with  the  Merchandise  in  hand  ? 

books?  4.  What  with  the  Notes  in  hand  ? 

2.  What  \s  to  be  done  with  the  cash  in  hand?  5.  What  with  our  own  Notes  in  circulation  ? 


69 


NEW  YORK,  January  1,  1867. 


*  Inventory  of  my  Effects  "^  Balance  account,  Ledger  A.  fol.  3. — 

Mdse.  in  hand          .         .         .  f  Invoice  Book,  p.  1.     $3000. 

Cash  in  hand  :         .         .         .  Ledg.  A.  fol.  2.                 7300. 

Due  me  on  notes      .         .         .  ^  Bill  Book,  p.  1.             3000. 

William  Hay  owes  me      .         .  Ledg.  A.  fol.  2.                 8000. 

House  and  Lot  44  Broadway  w         //        8.                15000. 
If 


*  Debts  owing  by  me  "^  Balance  account  Ledger  A.  fol.  3. — 

Due  on  my  notes  ^  Bill  Book,  p.  2 300. 

Due  Warden  &  Bell     ....      Ledg.  A.  fol.  2.  500. 

//    B.  Morris,  London,  due  31st  ult.  .             //           //  2000. 

==============     3,  — 


Sold  A.  Stuart  &  Co.  for  Cash— 
Mdse.  f  Sales  Book,  p.  1.      . 


Received  "^  Brig  Jersey,  Spencer,  Master,  from  J.  Taylor  &  Co., 
New  Orleans,  for  my  acct. — 

24  bales  Cotton,  ^  Invoice  Book,  p.  1 

Accepted  their  draft  on  me  for  amt.  of  the  Invoice  in  favor  of 
Ryan  &  Dale,  @  10  days'  sight,  $1000. 
w         • 


Bought  for  Cash  of  Martin  Hunter  &  Co.,  Flour  "^  I.  B.  1. 

-      10.  


Sold  Thomas  Edwards,  on  his  note  @  80  days,  Mdse.  "^  S.  B.,  p.  1. 


Sold  James  Carter  on  account,  Mdse.  '^  S.  B.,  p.  1.     . 
========     15,     — 


Bought  of  Walter  Bayard  &  Co.,  on  my  note  @  1  month,  Mdse. 
^  L  B.  1 

w       


*Paid  James  Carter's  order  on  me  in  favor  of  H.  Pryor,  in  Mdse. 
^  Sales  Book  1 '        . 

=============     16,  


*  Received  from  James  Carter  Cash  in  full    ..... 

w 

*Paid  Cash  in  the  City  Bank  for  my  note  in  favor  of  A. 

Stuart  &  Co 300. 

Also,  my  acceptance  of  J.  Taylor  &  Co.'s  draft  in  favor  of 

Ryan  &  Co ....    1000. 

ff        


Sold  James  Carter  on  account,  Mdse.  "^  Sales  Book  1. 


1.  You  may  journalize  direct  from  the  old  Balance  account  -without  a  Day  Book  entry,  thus  :— 

Sundries  Db.  To  Sundries,  $31,300, 
per  Balance  account,  Ledg.  A.  f.  3. 

Mdse 3000. 

Cash 7300. 

Bills  Receivable 3000. 

William  Ilay 3000. 

House  and  Lot  44  Broadway    ....    15000. 

To  Bills  Payable 300. 

"  Warden  &  Bell 500. 

"  R.  Morris  | 2000. 

"  Stock 28500. 

2.  We  do  not  here  credit  Taylor  <fe  Co.,  because  we  have  accepted  their  diaft  for  the  amount, 

3.  We  have  paid  Carter's  order  upon  us,  he  therefore  gets  in  debt  to  us. 

4.  When  a  person  pays  us  in  full,  we  ought  to  close  his  account. — See  notes  5  and  6,  page  23. 

5.  Neither  the  Bank  nor  any  of  the  parties  named  here  are  to  be  debited,  because  they  do  not 

get  in  debt  to  us. 
As  the  entries  are  journalized  they  should  all  be  marked  off  this  book,  as  in  the  margin  of 
the  first  entry  above. 

70 


31300 

2800 
300 

1000 

1800 

3000 
452 

1600 

108 
560 

1300 
600 


NEW  YORK,  January  1,  1867. 


*  Sundries,  Dr.  to  Stock    . 

Mdse 

Cash     .... 
Bills  Receivable 
Wm.  Hay      .         .         . 
House  and  Lot  44  Broadway 


Ledger  A.  fol.  2.* 
1. 


II        2. 
//       3. 


Stock,  Dr.  to  Sundries 

To  Bills  Payable 
//   Warden  &  Bell 
//   E.  Morris,  London 


Ledger  A.  fol.  2. 
//  II       2. 

u  II       2. 


3. 


v^aSj 

To  Mdse. 


l»r. 


Mdse.,  Dr.     . 
2  To  Bills  Payable 


Mdse.,  Dr. 
To  Cash    . 


10. 


Bills  Eeceivable,  Dr. 
To  Mdse.  . 


James  Carter,  Dr. . 
To  Mdse.  . 


15. 


Mdse.,  Dr.     . 
To  Bills  Payable 


'  James  Carter,  Dr.  . 
To  Mdse.  . 


16. 


Cash,  Dr 

*  To  James  Carter,  to  close  acct.   . 


« Bills  Payable,  Dr. 
To  Cash    . 


James  Carter,  Dr. 
To  Mdse.  . 


TEACHER'S  EXAMINATION. 

1.  Cannot  these  two  entries  be  made  direct  from  the  old  Balance  account? 

2.  "Why  not  credit  Taylor  &  Co.? 

3.  Why  debit  Carter  for  this  amount? 

4.  What  is  to  be  done  with  Carter's  account  when  this  la  posted? 

5.  Why  not  debit  some  of  the  parties  named,  or  the  Bank? 

*  Although  it  is  not  generally  done,  book-keepers  will  find  the  convenience  of 
making  the  opening  entries  of  a  new  Ledger  always  give  a  direct  reference  to  the 
old  one.  See  that  every  journal  entry  conforms  to  the  Book-keeper's  FIRST 
RULE— equal  debits  and  credits. 


3000 
7300 
3000 
3000 
115000 

2800 


300 
1000 
1800 
3000 

452 
1600 

108 

560 
1300 

600 


f 


31300 


300 

500 

2000 


300 


1000 


1800 


3000 


452 


1600 


108 


560  ' 


1300 


600 


WEWYORK,  January  18,  1867. 


Paid  Cash  for  Eepairing  House  44  Broadway 


«  Received  Cash  for  a  Quarter's  Rent  of  House  44  Broadway 


Received  of  James  Carter  his  note  @  20  days  in  full 
-  19.  == 


Sold  James  Carter  on  acct.  Mdse.  ''^  Sales  Book  1. 
-—  20.  = 


Bought  of  Captain  Rivers  the  ship  Hudson  for  $16000. 

Sold  him  in  part  payment  Mdse.  '^  Sales  Book  1.    .         .         .      5900. 

Paid  him  in  Cash 2100. 

Gave  him  my  note,  dated  15th  inst.,  @  3  months,  for  the 

balance  8000. 


James  Carter  has  failed^  and  I  have  compounded  with  him  at  50  cents  on 
the  dollar.     Rec'd  the  same  in  Mdse.  I.  B.,  p.  2.        .         .        200. 


280 
150 
600 
400 


The  Balance  is  lost 


200. 


24. 


16000 


400 


Gave  "Warden  &  Bell  my  Order  on  James  Walker  for  the  balance  I  owe 

them 500 


Received  of  C.  Banks  in  payment  for  his  note  due  this  day- 
Mdse.  '^  Invoice  Book,  p.  2.        . 
Cash, 

-  30.  ■ ^ 


500. 
500. 


*  Received  of  William  Hay  payment  of  his  account  of  $3000  now  due — 

Gash 1500.        I 

His  note  @  60  days  for  the  balance     .         .         .     1500. 

63  days'  interest  included  .         .         15.75       1515.75 


Paid  Cash  for  disbursements  of  Ship  Hudson 


31.  — 

Exchanged  notes  with  W.  Morris  for  our  mutual  accommodation,  each 
note  drawn  at  30  days,  for 


•Exchanged  notes  with  J.  Warden  for  our  mutual  accommodation,  each 
note  drawn  at  30  days,  for  $600,  and  I  have  discounted  his  note  in  the 
City  Bank.     Rec'd  Cash  net  proceeds  of  same       .         .         .       596.70 

3ci  days'  discount    .....  3.30   ii 


1000 

3015 
1200 

800 
600 


75 


1.  Ilere  House  in  Broadway  is  Dr.,  because  it  cost  us  this  sum. 

2.  House  in  Broadway  miist  be  credited  for  what  it  brings  us  in  for  sale  or  rent. 

3.  Carter  must  be  credited  for  what  he  gets  out  of  my  Debt. 

4.  We  only  credit  Hay  for  what  lie  gets  out  of  our  Debt.    Profit  &  Loss  or  Interest  account  is  credited 

for  the  gain  on  the  transaction. 

5.  As  we  disposed  of  Warden's  note  immediately,  it  is  not  necessary  to  debit  Bills  Receivable  for  it,  as 

in  the  preceding  entry,  where  we  retain  the  note.  No  property  account  can  be  credited  until  it 
has  beei^RKViousLY  debited.  The  Bills  Receivable  account  must  show  that  we  received  the  note 
before  ^^m,n  show  that  we  passed  it  away.  Bills  Payable,  the  first  thing  del'.vored,  must  be 
crediteSjJF 


72 


NEW  YORK,  January  18,  1867. 


*  House  44  Broadway,  Dr.     . 
To  Cash 


Cash,  Dr.  .         . 

2  To  House  44  Broadway 


Bills  Receivable,  Dr. 
To  James  Carter    . 


19. 


James  Carter,  Dr. 
To  Mdse. 


■ •       20. 

Ship  Hudson,  Dr.  to  Sundries 
To  Mdse.       .         . 

//    Cash    .... 

II   Bills  Payable    . 


Sundries,  Dr.  to  James  Carter,  to  close  account 
Mdse 


Profit  &  Loss 


24. 


Warden  &  Bell,  Dr. 
To  James  Walker 


Sundries,  Dr.  to  Bills  Receivable    . 

Mdse 

Cash 


280 


150 


600 


400 


16000 


========       30.       - 

*  Sundries,  Dr.  to  Sundries 

Cash 

Bills  Receivable 

To  AVilliam  Hay,  to  close  account  ^ 
//   Profit  &  Loss 


S3015.75. 


Ship  Hudson,  Dr. 
To  Cash    . 


Bills  Receivable,  Dr. 
To  Bills  Payable 


Sundries,  Dr.  to  Bills  Payable 
Cash  .... 

Profit  &  Loss 


TEACHER'S  EXAMINATION. 

1.  Why  debit  Ilotise  in  Broadway  ? — Repeat  Rule  VI. 

2.  Why  credit  House  in  Broadway? — Repeat  Rule  VII. 

3.  Why  is  Carter  credited  for  $400  when  he  has  only  paid  $200?— Repeat  Rule  IV. 

4.  Why  not  credit  Hay  for  $3015.75,  the  amount  he  has  paid?— Repeat  Rule  IV. 

6.  Wliy  not  credit  Bills  Receivable,  Warden's  note  being  the  thing  delivered  to 
the  bank? 


73 


200 
200 

500 


500 
500 


1500 
1515 


1200 
800 


596 
3 


280 
150 

600 

400 


5900 
2100 

8000 

400 


500 
1000 


75 


3000 
15 


1200 

800 
600 


75 


70 
30 


NEW  YORK,  February  1,  1867. 


'Eeceived  by  tlie  Ship  Herald,  Chase,  master,  from  London,  Mdse.  p.  I.  B. 
2,  shipped  to  me  by  R.  Morris  by  my  order  and  for  my  account,  amount- 
ing "^  Invoice,  due  in  London  10th  April  next,  to  .  $8888.88 
Gave  my  bonds  to  the  Custom  House  for  duties  @  3  and  6  mos.  2222.22 
""  "  "  "     ~    ■  85. 


Paid  freight  in  Cash 


'Received  from  R.  Morris,  by  the  Ship  Herald,  Chase,  master,  from  Lon- 
don, 30  pipes  Port  Wine,  "^  Invoice  Book,  £2000  sterling,  for  sale  on 
his  account. 

Gave  my  bonds  to  the  Custom  House  for  duties 

Paid  freight  in  Cash      ..... 


3  and  6  mos.  $2222.22 
167.78 


5. 


Paid  Cash  for  Cooperage  and  Cartage  of  Morris'  Wines 

//  


Sold  for  Cash  to  Jacob  Lorillard, 
120  gallons  R.  Morris'  Wines.     C. 


S.  B.  1.     @  $3  f  gallon 


6. 


•Discounted  in  the  City  Bank  W.  Morris'  note  of 
Received  Cash  net  proceeds 
27  days'  discount         ..... 

-  9.  = 


$796.40 
3.60 


Sold  Wm.  Park  on  his  note  @  4  mos.,  endorsed  by  Warden  &  Bell. 
5  pipes  R.  Morris'  Wines,  p.  C.  S.  B.  1 ' 

-  12.  --  


*  James  Carter,  who  lately  failed,  compounds  with  me  for  50  cents  on  the 
dollar  for  the  note  which  I  hold  against  him  due  yesterday. 


Received  a  new  note  endorsed  by  W.  Hay  for 
The  balance  is  lost 


$300. 
300. 


Rec'd  Cash  of  T.  Edwards  on  account  of  his  note  due  this  day 


*  Shipped  by  the  Brig  Jersey,  Spencer,  master,  and  consigned  to  J.  Taylor 
&  Co.,  New  Orleans,  10  pipes  1200  gallons  R.  Morris'  Wines,  for  sale 
on  account  of  his  consignment.     C.  S.  B.  1. 

Paid  freight,  &c.,  in  cash 


^Shipped  by  the  same  vessel,  consigned  to  J.  Taylor  &  Co.,  for  sale  on  my 
account,  Mdse.  from  store,  p.  Sales  Book         ....     $2760. 


Invoice  of  Table  Linens,  bo't  of  Wm.  Hay  on  acct. 
Freight  and  charges  paid  in  cash 


3  mos. 


1500. 
33. 


*  Shipped  by  the  same  vessel,  and  consigned  to  J.  Taylor  &  Co.,  by  their 
order  and  for  their  account,  an  Invoice  of  Tea  from  store,  p.  S.  B.  (due 
this  day) $600. 

Paid  Freight  and  Insurance  in  cash     .         .         .         .         .         .         11. 

Commission  on  $600  at  5  per  cent,  is $30. 

Commission  for  effecting  insurance  i  per  cent,  is  .         .         3.       33. 


1.  We  credit  Morris  only  for  what  we  get  into  debt  to  him— see  note  1,  p.  30. 

2.  We  never  credit  any  account  for  the  invoice  of  a  consignmen<^-seo  Questions  21  and  28,  p.  41. 

3.  Bills  Receivable  was  debited  (.Jan.  31),  therefore  we  must  now  credit  that  account. 

4.  Bills  Receivable  must  be  credited  for  the  am't  of  the  note  given  up;  Profit  &  Loss  is  Dr.  for  the  loss. 

5.  The  first  of  these  shipments  is  a  re-consignment,  and  cannot  be  debited  to  any  account. 
The  second  is  an  adventure  of  our  own ;  wo  debit  sliipment  to  N.  Orleans — Rule  XI.,  p.  41. 
The  third  being  shipped  by  Taylor  &  Co.'s  order,  and  on  account,  they  are  debited. 

74 


11196 


IG 


2390 
5 

360 

800 
2100 

600 
2000 

'28 

4293 


644 


NEW  YORK,  February  1,  1867. 


^  Merchandise,  Dr.  to  Sundries 
To  R.  Morris       .       . 
//   Bills  Payable    . 
//   Cash   .... 


'  R.  Morris'  Sales,  Dr.  to  Sundries    . 
To  Bills  Payable 
//    Cash         .         .         .         .         . 

==============       5. 


R.  Morris'  Sales,  Dr. 
To  Cash 


Cash,  Dr.  . 

To  R.  Morris'  Sales 


6. 


'  Sundries,  Dr.  to  Bills  Receivable 

Cash 

Profit  and  Loss 


9. 


Bills  Receivable,  Dr. 
To  Morris'  Sales 


=====      12. 

*  Sundries,  Dr.  to  Bills  Receivable 
Bills  Receivable 
Profit  and  Loss 


Cash,  Dr. 

To  Bills  Receivable 


*  Morris'  Sales,  Dr. 
To  Cash 


^^  Shipment  to  New  Orleans,  Dr.  to  Sundries 

To  Mdse 

//    Wm.  Hay    ..... 
//    Cash        ...... 


^  John  Taylor  &  Co.,  Dr.  to  Sundries     . 

To  Mdse 

//    Cash     ...... 

//    Commission      .... 


TEACHER'S  EXAMINATION 

1.  Why  not  credit  Morris  for  the  whole  $11,196.10? 

2.  "Why  not  credit  Morris  for  this  invoice  as  well  as  that  in  the  last  entry? 

3.  Why  not  credit  Bills  Payable  as  we  did  with  2d  entry  Jan.  Slst  ? 

4.  Why  credit  Bills  Receivable  for  the  whole  $600  when  we  only  got  a  new  note 

for  $300  ? 

5.  Why  not  debit  Taylor  &  Oo.  for  all  these  three  shipments— they  being  consigned 

to  them  ? 
After  this  set  is  posted  the  student  must  make  out  all  the  accounts,  accounts  of 
sale  and  invoices.    Also,  write  out  all  the  notes,  orders,  drafts,  acceptances,  and  bills 
of  exchange,  inserting  his  own  name  when  he  is  the  promisor,  acceptor,  or  endorser. 


70 


11196 

10 

2390 

5 

360 

796 
3 

40 
60 

2100 

300 
300 

1 

2000 

•28 

4293 

644 

li 

8888 
2222 

85 


2222 
167 


88 
22 


22 

/8 


360 
800 

2100 
600 

2000 
28 


2760 

1500 

33 


600 
11 
33 


NEW  YORK,  February  18, 1867. 


*  Received  from  T.  Edwards  for  the  balance  of  his  note  due  12th  instant, 
an  invoice  of  Flour  ^  I.  B.  2 

II  . 


Insured  my  house  in   Broadway,  for  one  year,  in  the  Sun  Office,  for 
§10,000,  @  2  per  ct.;  policy  $1.     Amt.  paid  in  cash 


•Insured  in  the  New  York  Office,  $12,000  for  one  year  on  my  stock  of 
mdse.  in  my  store  in  Front  street,  @  IJ  "^  ct. ;  policy  $  1.  Amt.  paid  in 
cash  


»  Pd.  R.  Morris'  Bill  on  me  at  sight  for  $4440,  in  favor  of  R.  Banks, 

In  Mdse.  f  Sales  Book  3 200. 

R.  Morris'  goods  ^  0.  S.  B.  1        .    • 840. 

Cash  3400. 


Pd.  my  note  due  this  day  in  favor  of  W.  Bayard  Co.  for  1600, 

In  R.  Morris'  Wines  ^  C.  S.  B.  1,  sold  him  9th  inst.  $1080. 

Mdse.  f  Sales  Book  3 500. 

Cash  for  balance .         .20. 

===========  20.  ==::^== 


*  Accepted   R.  Morris'  Bill  on   me   at    10  days'  sight   in  favor  of  R. 


Banks,  for 


Refunded  cash  to  R.  Banks  for  6  galls,  overgauged  Wine  belonging  to 
R.  Morris,  sold  him  18th  inst.,  twenty-one  dollars.     R/  Banks.* 
25.  


Collected  for  R.  Morris  Ryan  &  Dale's  draft  on  Barclay,  Fox  &  Co.,  for 

$2000.     Net  Proceeds  Rec'd  in  Cash 1995. 

Also  my  commission  on  same,  \^  ct.  .         .         .         .         5. 

II 


*  Lent  Cash  to  Capt.  John  Bowline  on  the  Bottomry  Bond  of  his  Ship,  the 
Hunter,  payable  with  20  '^  ct.  prera.  to  my  agent,  R.  Morris,  in  London, 
10  days  after  the  arrival  of  his  Ship  in  England  .         .         .         . 


*  Found  in  the  Park  a  purse  containing  eighty  half  eagles,  which  I  have 
advertised  but  no  owner  has  claimed  it  ...... 


1.  I  have  here  followed  the  usual  practice;  but  I  prefer  the  course  reccommended  in  Note  3,  page  48. 

2.  I  have  made  it  a  rule  to  debit  Merchandise  only  for  the  cost  and  charges  of  bringing  it  into  store 
and  for  manufacturing.    The  cost  of  keeping  the  store  I  carry  to  Expense  or  Profit  and  Loss. 

3.  "We  here  pay  this  amount  for  Morris ;  it  is  the  same  as  paying  it  to  him ;  he  gets  into  our  debt  and 
is  therefore  Dr. 

4.  We  should  never  debit  a  consignment  account  for  any  thing  but  the  charges.    All  advances  made 
on  acct.  of  it  should  be  debited  to  the  owner's  private  acct.— Kule  X.,  Note  29,  p.  41. 

5.  This  is  a  Bill  Receivable,  that  account  is  therefore  Dr. 

6.  We  can  only  debit  Bills  Receivable  for  the  face  of  the  bill,  not  for  what  it  costs. 

7.  We  debit  property  for  its  value  when  it  becomes  ours,  whether  it  costs  us  any  thing  or  not. 
♦  This  is  BanK.8'  signature,  making  a  receipt  of  the  entry.— See  Note  5,  p.  12. 


76 


Bought  for  Cash  of  Baker  &  Fox  their  Bill  at  60  ds.  on  R.  Morris  for 

£1000  Sterling  4444.44   | 

Premium  on  the  same,  8  "^  ct. 355.56   j 

. //  ZZZZZ! 


1000 


201 


181 


4440 


1600 


2500 


21 


2000 


2000 


4800 


400 


NEW  YORK,  February  18,  1867. 


Mdse.,  Dr 

1  To  Bills  Eeceivable 
u 

House  in  Broadway,  Dr. 

To  Cash .         .         .         .         . 

tt 

2Profit&Loss,  Dr. 

To  Cash 
II 

^K.  Morris,  Dr.  to  Sundries  . 
To  Mdse. 
//   Morris'  Sales 
//   Cash  .... 

II 

Bills  Payable,  Dr.  to  Sundries 
To  R.  Morris'  Sales 

//    Mdse.  '/ 

II    Cash  II 

:====  20. 

*  B.  Morris,  Dr.     . 
To  Bills  Payable      . 

// 

R.  Morris'  Sales,  Dr.  . 

To  Cash  .         .         .         . 

=====:=.  25. 

Cash,  Dr.  to  Sundries 
To  R.  Morris  . 
//   Commission    . 
_— // 

^  Bills  Receivable,  Dr. 
To  Cash      .... 

— — ,  // 

Sundries,  Dr.  to  Cash 
^  Bills  Receivable 
Profit  &  Loss 

II 

'  Cash,  Dr 

To  Profit  &  Loss  . 


1000 


201 


181 


4440 


1600 


2500 


21 


2000 


2000 


4444 
355 

400 


44 
56 


1000 


201 


181 


200 

840 

8400 


1080 

500 

20 


2500 


21 


1995 
5 


2000 
4800 

400 


TEACHERS  EXAMINATION. 

1.  When  a  note  is  thus  paid  by  instalments,  is  it  not  liable  to  complicate  and  con- 

fuse the  Bill  account  to  credit  it  in  different  payments? 

2.  Why  not  debit  Merchandise? 

3.  Why  debit  Morris? 

4.  If  this  bill  is  drawn  on  account  of  the  consignment,  would  it  not  answer  as  well 

to  debit  that  account  for  it  ?     See  Form  xxi.,  p.  120. 

5.  What  is  a  Bottomry  Bond  ?    Repeat  Question  5,  Rule  IX..  p  40. 

6.  Why  not  debit  Bills  Receivable  for  $iSOO,  what  it  cost? 

7.  Why  debit  Cash  for  this,  seeing  it  cost  us  nothing? 


77 


NEW  YOBK,  February  28,  1867. 


*Sold  for  Casli,  at  8i   per  cent,  prem.,  to  R.  Irvin  & 

Fox's  Bill  on  R.  Morris  for  £1000  sterling,  equal  to 
Premium  82- per  cent.  ...... 


Co., 


Baker  & 
4444.44 

377.78 


»Sold  Warden  &  Bell,  by  C.  Murray,  Broker,  my  Bill  of 

Exchange,  @  60  days'  sight,  on  B.  Morris,  for  £1000  stg. 

Prem.  on  the  same  8^  per.  ct.  .  $377.78 

Murray's  Brokerage  i  per  ct.  off  12.06    gain 

Add  33  days'  Int.  included  in  Warden  &  Bell's  note 
Whole  gain  on  the  transaction 
Pioceived  in  payment 

Warden  &  Bell's  note  .... 

33  days'  Interest  included        .... 

Cash  for  the  balance    .         .         .    "      . 


365.72. 
11. 


2000. 
11. 


4444.44 


376.72 


2011. 
2810.16 


4821.16 


'  At  the  fire  which  broke  out  in  my  store  in  Front  Street  yesterday, 
goods  were  destroyed  amounting,  ^  Sales  Book,  3,  to       . 


William  Hay  and  myself  have  entered  into  an  arrangement  for  the  pur- 
pose of  buying  and  selling  Merchandise  on  joint  account,  each  partner's 
interest  in  such  speculations  to  be  equal.  He  now  advances  me  cash 
to  be  invested  under  this  arrangement      ...... 


'William  Hay  has  sent  to  my  store  for  sale  on  joint  acct. 
5  pipes,  900  gals.,  Madeira  Wine    . 

My  half,  due  June  1st,  is      .         . 
===    .         2. 


SI.  $900. 


*Bo't  of  James  Walker  on  Book  acct.,  @  30  days,  for  the 
joint  acct.  of  myself  and  Wm.  Hay,  20  tierces,  24,000  lb., 
Rice @  5  c. 

W.  Hay's  half,  due  April  1st,  is  .         .       $600. 

My  half,       //       //         i/       //    is       .         .         .     600. 


$1200. 


Received  Cash,  freight  of  the  Ship  Hudson 


Being  appointed  Agent  for  the  Ship  Roscoe,  I  have  purchased  of  Capt. 

Manly  i  of  the  vessel  for  $5000.     Sold  him,  in  payment — 
5  pipes,  900  gals.,  1st  Co.  Wine      .         @  $1.J       $1200. 
20  tierces,  24,000  tb.,  1st  Co.  Rice       .     @  7  cts.       1680.  2880. 

Balance  paid  in  Cash       ....... 


2120. 


4. 


'  Paid  Cash  for  Disbursements  of  Ship  Roscoe 

Passed  my  note  at  4  mos.  for  her  Ins.  on  20,000  @  2  p.  ct. 


850. 
400. 


1.  Here  we  sell  two  bills,  both  drawn  on  Morris.  Bills  Receivable  is  credited  for  the  first,  that  account 

having  been  debited  when  we  received  the  bill  and  gave  value  for  it — note  6,  p.  76.    We  credit 
Morris  for  the  other  bill,  because  we  have  drawn  it  oxirselves,and  tlierefore  get  into  his  debt. 

2.  See  Day  Book,  February  18,  and  Sales  Book,  February  28.    We  debit  the  Insurance  Office,  as  we 

hold  it  responsible  for  this  amount. 

3.  We  are  not  res])onsible  to  Hay  for  any  thing  more  than  our  own  share — $450. 

4.  Here  we  debit  Hay  for  his  half,  because  he  becomes  owner  of  half  the  purchase,  and  has  not  paid 

us  for  it. 

5.  The  advances  we  make  as  Agent  for  the  vessel,  must  not  be  mixed  up  with  the  cost  of  otir  own 

share  of  her:  therefore  we  must  have  two  separate  accounts. 
^_  __  .-.--^ 


4822 


22 


4821 


16 


3690 


2500 


450 


1200 


1850 


5000 


1250 


NEW  YORK,  February  28,  1867. 


2 

I  3 


Cash,  Dr.  to  Sundries 

1  To  Bills  Receivable 

/•   Profit  &  Loss 

„ 

Sundries,  Dr.  to  Sundries  .         .         .         .         84821.16 

Bills  Receivable 

Cash 

1  To  R.  Morris 

//  Profit  &  Loss 

ff  

^  New  York  Insurance  Office,  Dr 

To  Mdse 

—  Mar.  1.  = 

Cash,  Dr 

To  Wm.  Hay     .         .         .         .         .         ... 

If  — 

1st  Co.  Sales,  Dr 

»ToWm.  Hay • 

===========        2.  

Sundries,  Dr.  to  James  Walker 

Wm.  Hay  .         .         .         .         . 

*  1st  Co.  Sales •         • 

w  

Cash,  Dr 

To  Ship  Hudson 

— ■  If 

Ship  Roscoe  my  i,  Dr.  to  Sundries     .... 

To  1st  Co.  Sales 

ir   Cash 

=====         4.        ========= 

*  Ship  Roscoe  &  Owners,  Dr.  to  Sundries  .         .         .         . 
To  Cash 

//   Bills  Payable    ........ 


TEACHER'S  EXAMINATION 

1.  Why  is  Bills  Receivable  account  not  credited  alike  for  both  these  bills  ?— Repeat 

Rule  IX.,  p.  40. 

2.  Where  are  the  particulars  of  this  entry  for  holding  the  insurance  ofiBce  respon- 

sible for  this  amount? 

3.  Why  should  not  Hay  have  a  credit  for  the  whole  amount  of  goods  which  he  put 

into  my  hands  ? — Repeat  Rule  XII.,  and  note  8,  p.  43. 
4  Why  not  debit  Sales  in  Co.  for  the  whole  amount? 
5.  Why  not  debit  the  account  of  Ship  Roscoe  my  i  for  the  amount? 


4822 


22 


377 


44 

78 


2011 
2810 


3690 


2500 


450 


600 
600 


1850 


5000 


1250 


16 


44AA: 
376 


3690 


2500 


450 


1200 


44 

72 


1850 


2880 
2120 


850 
400 


79 


NEW  YORK,  March  4,  1867. 


Paid  Casli  to  the  City  Bank  for  my  note  due  to-morrow  in  favor 
of  W.  Morris 

Also  paid  Cash  to  the  Merchants'  Bank  for  my  note  in  favor  of 
J.  Warden 

-  5.  = 


800. 
600. 


Sold  R.  Banks  5  hhds.  Havana  Sugar,  viz. — 
1050,  1150,  1000,  1200,  1100     5500  lbs. 
Less  Tare,  10  per  cent.  550     4950  lbs.,  @  10  cts.     495. 

5  chests  Y.  II.  Tea,  viz. — 

80,  85,  75,  90,  70    .         .         .     400  ibs.  net.        @  90  cts.     360. 

6  ps.,  20^  19'f,  20,  21,  19,  20,     120  yds.  S.  F.  Cloth,  @    $10.    1200. 
6  doz.  pair  best  12-4  Bath  Blankets         .         .         .   @  $120.      720. 

"       $3.      450. 

.75    15. 

$9.        90. 

$1.50    24. 

1. 


150  pieces  3-color  Merrimac  Prints 
20  yds.  Super  Saxon  Plannel    . 
10     //     Finest  Grreen  Broadcloth 
16     //     Fancy  Fig'd  Satin 

2  Packing  Cases     . 
Beceived  in  Payment  my  acceptance  for  R.  Morris,  due  ** 

this  day 2500. 

Banks'  Order  at  sight  on  J.  Walker,  which  I  deposit  on 

acct.  with  Walker 600. 

Cash  for  Balance 255.   $3355. 


^  Beceived  Cash  for  Freights  and  Passages  ^  Ship  Boscoe 


•  1st  Co.  Mdse.  being  all  sold,  I  render  Wm.  Hay  acct.  and  close  the  sales 
as  follows :— Total  Sales,  $2880.     My  2  J  Commission  is        .         72. 

Storage '        .  8. 

W.  Hay's  half  net  proceeds  due  this  day  is        .         ...         .     1400. 
My  net  gain  is 350. 

12.  . ^^ 


Received  from  J.  Taylor  &  Co.,  New  Orleans,  acct.  sales  of  Morris'  Wines. 
Net  proceeds,  $4500,  for  which  I  have  received  their  bill  @  60  days 
on  Barclay,  Hope  &  Co.,  which  is  accepted         .         .  .         .         . 


*  Received  from  J.  Taylor  &  Co.,  N.  Orleans,  acct.  sales  of  my  consignment 
■^  Brig  Jersey.    Net  proceeds,  $5800,  for  which  received  their  Invoice 

^  of  Sea  Island  Cotton,  amounting  to 5800. 

Paid  freight  and  charges  on  the  same  in  cash  ....         180. 


Taken  to  my  account  the  remaining  9  pipes,  1080  galls.,  Morris'  Wines, 
@  $3  ^  gall.,  as  cash  in  2  months 


Received  from  the  New  York  Insurance  Office  Cash  in  full 


*  Shipment  to  N.  Orleans  closes  with  a  gain  of 


1.  This  entry  shows  how  a  sale  must  appear  on  the  Day  Book  when  no  Sales  Book  is  kept. 

2.  I  have  to  account  to  the  Ship  Roscoe  and  Owners  for  tliis  sum,  therefore  I  credit  tlieir  account. 

3.  The  total  sales  per  Ledger  is  $2880,  less  charges  $80  =  $2800,  half  of  which  is  Hay's  share,  $1400. 

Our  half  first  cost  per  Ledger  was  $1050,  and  our  share  net  proceeds  being  $1400,  leaves  our  gain 

4.  Taylor  &  Co.  having  remitted  the  proceeds  of  the  sales,  the  transaction  is  not  carried  to  their  account. 

We  have  only  to  debit  the  thing  received,  and  credit  the  account  that  brought  that  thing  in.— Rule 
V.  and  VIL,  p.  39. 
o.  Always  close  property  accounts  when  all  is  sold,  as  we  do  with  personal  accts.  when  wo  settle  with  the 
parties.— Note  4,  p.  70.    The  gain  or  loss  must  appear  in  the  Profit  &  Loss  acct.,  for  reasons  given 
Mdsc.  acct.— Note  4,  p.  33. 

_  _ 


1400 


3355 


1800 


1830 
4500 

5980 

3240 
3690 
1507 


NEW  YORK.  March  4  1867. 

Bills  Payable,  Dr 

To  Cash 

-=-==^ 5.        -^ -  — 

'  Sundries,  Dr.  to  Merchandise  .         .         .*        . 

Bills  Payable 

James  Walker       ....... 

Cash 

« r- : „ 

Cash,  Pr.      .         .         .         .         .         .         .         . 

'  To  Ship  Koscoe  &  owners 

w 

1st  Co.  Sales,  Dr.  to  Sundries,  to  close  account 
To  Commission  ...... 

.7    Profit  &  Loss  88  and  8350         .... 

»  //   W.  Hay 

12.  -^ 

Bills  Eeceivable,  Dr 

To  Morris'  Sales 

w  

Merchandise,  Dr.  to  Sundries  .         .         .         . 

*  To  Shipment  to  New  Orleans 

ti    Cash        ........ 

-^  ^^         

Merchandise,  Dr.       ...... 

To  Morris'  Sales 

-  ^^  

Cash,  Dr 

To  New  York  Insurance  Office,  to  close  account 

^^  

*  Shipment  to  New  Orleans,  Dr.,  to  close  account  . 
To  Profit  &  Loss 


TEACHER'S  EXAMINATION. 

1.  Why  are  all  these  particulars  given  in  the  Day  Book  Entry? 

2.  Why  credit  Ship  Roscoe  and  owners  for  tliis  sum? 

3.  How  is  Hay's  half  not  proceeds  and  our  half  net  gain  found  here?    Repeat 
Question  25,  page  41. 

4.  Why  credit  Shipment  to  New  Orleans  for  this  $5800? 

5.  Why  should  this  account  be  debited  for  this  sum  ? 


1400 


2500 
600 
255 


1800 


1830 


1400 
3355 


4500 


5980 


3240 


3690 


1507 


1800 


72 

358 

1400 


45001 


5800 
180 


3240 


3690 


1507 


/ 


81 


NEW  YORK,  March  12,  1867. 


^ Morris^  Consignment  being  all  sold,  I  render  him  account;    closing  the 
sales  as  follows : — Total  sales  $12,120,  charges  posted  to  date,  $2444. 
My  commission  on  the  sales  @  5  "^  cent.,  is     .         .         .         .     $606. 

Storage  and  advertising  ........         18. 

Net  proceeds  at  Morris'  credit,  due  2d  May      ....     9052. 


'As  Executor  of  the  estate  of  the  late  A.  Lenox  I  have  received  possession 
of  the  following  property  for  the  use  of  his  heirs,  viz. 
Cash  in  deposit  in  the  Manhattan  Bank  ....       'JSOO. 

Notes  in  hand,  No.  15  and  16,  f  Bill  Book    ....       1700. 
House  and  lot  49  Cedar  Street,  valued  at        ...         .     12000. 


967^ 


100  Shares  City  Bank  Stock 


10000. 


16. 


•James  Carter's  Note  for  $300  endorsed  by  W.  Hay,  fell  due  in  my  hands 
yesterday  and  remaining  unpaid,  I  value  the  same  in  account  with  Hay  i 
as  cash  due  this  day  ......... 


Pd.  Cash  for  A.  Lenox's  Note  in  the  Manhattan  Bank 


17. 


*  James  Day's  Note  for  $500  falls  due  in  my  hands  to-day. 
Bec'd  in  payment  his  new  Note  @  60  days  for    . 

//      Cash  for  the  balance 100. 

63  days'  interest  on  new  Note  .         .  4.20 


400. 


104.20 


Paid  Cash  Attorney's  fees  for  Estate  of  A.  Lenox 
*  //        //      Insurance  of  house  49  Cedar  Street 

===========         20.         = 


10. 
160. 


Received  H.  Parnel's  Note 
A.  Lenox 


60  days  for  balance  due  the  Estate  of  | 


•W.  Hay  has  put  into  my  store  for  sale  on  joint  acct.  9  pipes  Wine,.  1080 

gallons @  $3,     $3240. 

I  have  added  the  same  quantity  at  same  price  from  store        .         3240. 

$6480. 
My  half  is 

—  —  25.  = 


31200 


300 


'2500 


504 


170 


1340 


•Wm.  Hay  and  myself  have  bought  for  cash  on  joint  acct.  200  Bales  Cot- 
ton, amounting  "^  invoice  to    .         .         .         .         .         .         .    $9000. 


Each  partner  has  paid  his  own  share  in  cash 


1.  The  total  sales  were  $12,120,  less  the  whole  charges  $3068,  leaves  net  proceeds  $9052.— Form  IV. 
p.  117. 

2.  We  raust  here  debit  the  several  kinds  of  property  we  receive  and  credit  the  account  of  the  estate 
for  the  whole,  which  property  must  be  disposed  of  hereafter  according  to  instructions,  when  the  estate 
will  be  debited  for  it. — Note  3,  Lenox  Estate,  p.  110 

3.  I  have  here  done  as  recommended  in  Note  3,  page  48. — I  look  to  Hay  for  the  amount. 

4.  The  things  received  are  Dr.  to  the  tilings  delivered,  and  Interest  or  Profit  &  Loss  is  credited  for  the 
gain. 

5.  This  building  belongs  to  the  Lenox  Estate,  and  we  debit  it  for  what  we  expend  upon  it,  and  credit 
it  for  the  returns. 

6.  For  the  reasons  given  in  Rule  XII.  neither  of  these  entries  affects  Hay's  acct.  in  our  Books. 


20 


324!> 


4500 


82 


NEW  YORK,  March  12,  1867. 


7 
8 
6 
5 

10 
2 
3 

10 
10 


10 

9 


3 
2 
3 

6 

2 

10 
10 

3 

10 

9 

1 

9 

2 


I     Morris'  Sales,  Dr.  to  Sundries,  to  close  acet.    . 
I     To  Commission           ..... 
I      II   Profit  &  Loss    .         .         .         . 
*  //   R.  Moriis 


2  Sundries,  Dr.  to  Estate  of  A.  Lenox 
Cash  .         .         . 

Bills  Receivable    . 
House  49  Cedar  Street 
City  Bank  Stock   . 

—  16 


«  Wm.  Hay,  Dr. 

To  Bills  Receivable 


A.  Lenox  Estate,  Dr. 
To  Cash.       . 


17 


*  Sundries,  Dr.  to  Sundries 
Bills  Receivable.   . 
Cash 

To  Bills  Receivable 
//   Profit  &  Loss 


Sundries,  Dr.  to  Cash 
^  Estate  of  A.  Lenox    . 
House  49  Cedar  Street 


20, 


Bills  Receivable,  Dr. 
To  Estate  of  A.  Lenox 


MstCo.  Sales  Dr. 
To  Mdse.      . 


25. 


8  1st  Co  Sales  Dr. 
To  Cash 


$504.20 


TEACHER'S  EXAMINATION. 

1.  How  do  we  find  the  net  proceeds  due  Morris  Iiere  ?— Repeat  Quest.  25,  p.  41. 

2.  Why  credit  the  Estate  for  all  this  property  ? 

3.  Why  debit  Hay  for  this  note  ? 

4.  Why  debit  Bills  Receivable  and  Cash,  and  credit  Bills  Receivable,  and  Profit 

&  Loss,  all  in  the  same  entry?— Repeat  Rules  V.  and  VIII. 
6.  Why  not  debit  Estate  of  Lenox  for  this  $160,  as  this  house  belongs  to  it? 
6.  IIow  is  it  that  there  is  no  enti-y  for  Hay's  account  in  either  of  these  cases?— 

Repeat  Rule  XIL,  p.  43. 


9676 


7500 

1700 

12000 

10000 

300 


2500 


400 
104 


10 
160 

1340 


3240 


4500 


20 


606 

18 

9052 

31200 


300 


2500 


500 
4 

170 


1340 


3240 


4500 


20 


83 


NEW  YORK,  March  28,  1867. 


Placed  to  1st  Co.  Account  500  bbls.  Flour  from  store 
William  Hay  has  sent  in   300  bbls. 

My  half  is $2000. 

Rec'd  Bal.  of  "VVm.  Hay's  share  in  cash         500. 

=:^^==:^  ■     31.  -^:^:= 


$2500. 
1500. 


'  Paid  Cash  to  Charlotte  Lenox  on  acct.  of  her  legacy 

//  


^  Paid  Cash  to  Robert  Lenox  on  acct.  of  his  legacy 
.  April  1, 


Lent  Cash  to  James  Walker  on  his  note  @  6  months,  endorsed  by  War- 
den &  Bell,  and  dated  the  6th  instant,  for  .         .         .       "^  2000. 
6/tr  months'  Interest  included  in  the  note     .         .         .         .  63. 


Shipped  by  the  Columbia,  Gray,  Master,  consigned 
Liverpool,  for  sale  on  my  account— 

40  bales  Cotton  from  store     . 
100  bbls.  Flour  from  do.        .         .         . 
4500  bush.  Wheat  @  $1,  Bought  of  P.  Nevius  on 
Barclay,  Hope  &  Co.'s  acceptances 
Shipping  Expenses  paid  in  Cash 
Passed  my  note  to  the  Marine  Insurance  Co.  for  pre- 
mium ^  on  $8010  @  2  per  ct.  (covering  the  pre- 
mium and  policy),  Policy  $1.25 
— //  


to 


Baring  &  Co., 


@$5 


2500. 

500. 


3000. 


4500. 
348.55 

161.45 


*  Shipped  by  the  Brig  Cherub,  consigned  to  Hartwell  &  Thorndike,  Bos- 
ton, by  order  and  for  account  of  R.  Morris,  London — 
240  bbls.  Mess  Pork,  Bought  of  Wm.  Hay  @  30  days,  due 


May  5th       .         .         .         . 
Paid  Shipping  Expenses  in  Cash 
Passed  my  note  @  30  days  for  Insurance 
Commission  on  purchase  of  $2000  @  5  per  cent   . 

i  per  ct.  for  effecting  Insurance     . 
10. 

.  $2000. 

.  .       20. 
41.25 
.  100. 
.      5.       105. 

- 

^  Paid  Cash  for  honor  of  John  Taylor  &  Co.,  their  draft  on  Sidney  Wood 
&  Co.  being  Protested  for  non-payment. 
Bill  $1200,  Protest,  &c.,  $4  .......     1204. 

My  ^  per  ct.  Brokerage        .......  6. 


Received  from  the  Executors  of  my  father's  Estate  50  shares  Merchants' 
Bank  •  Stock,  valued  at 


1.  Hay  does  not  here  get  in  debt  to  us,  nor  we  to  him.    Therefore  we  have  no  entry  for  his  acct. 

2.  These  persons  being  Legatees,  we  must  debit  their  private  accounts  for  all  payments  we  make  them, 

until  the  final  settlement. — Note  3,  Lenox  Estate,  p.  110. 

3.  The  invoices,  shipping  expenses,  and  policy,  amount  to  $7849.80.    Then  98  :  100  :  :  7849.80  :  S8010, 

the  sura  upon  which  to  cast  the  2  per  ct.  premium,  which  amounts  to  £.160.20  +  7849.80  =  8010, 
thus  insuring  both  premium  and  policy  with  the  shipment. 

4.  Morris  gets  in  debt  to  us  for  this  amount,  therefore  he  is  Dr. — not  IlartAvell  &  Thorndike. 

5.  We  were  not  obliged  to  pay  this  draft.    Wo  have  done  it  to  save  the  credit  of  our  N.  Orleans 

correspondents,  Taylor  &  Co. 

6.  We  might  credit  Profit  and  Loss,  but  such  additions  to  our  capital  belong  more  properly  to  Stock, 

for  reasons  given  in  note  3,  page  30. 


84 


2500 
500 
800 

2063 


8010 


2166 


1210 


5000 


NEW  YORK,  April  10,  1867. 


*  Accepted  supra  protest  for  the  honor  of  J.  Taylor  &  Co.,  their  bill  at 
10  days,  on  Sidney  Wood  &  Co.,  for  $600;  protest  $1       .  $601. 
My  i  "§  cent.  Brokerage — due  23d  inst 3. 


^  Shipped  by  the  Cambria,  Adams,  master,  and  consigned  to  K.  Morris, 
London,  for  sale  on  his  acct.,  J.  Taylor  &  Co.,  and  myself,  each  ^. 
60  Bales  Sea  Island  Cotton  from  store       .         .         .  $4000. 
100  Barrels  Flour  from  do.        @  $6.         .      600.  4600. 


200  Bales  1st  Co.  Cotton    .... 
Shipping  Expenses  paid  in  Cash 
Passed  my  Note  @  3  mos.  for  insurance 
My  commission  on  $14400  @  2J  '^  ct.  is 
//  //  Effecting  Insurance  \  ^  ct. 

J.  Taylor  &  Co.'s  I  is         4980.33  • 
R.  Morris'  //  4980.33 

My  (2d  Co.)  //  4980.34     $14941. 


$360. 
36. 


9500. 
300. 
145. 

396. 


604 


Due  this  day. 


■  Shipped  by  the  Brig  Tribune,  Speer,  master,  and  consigned  to  C. 
Hartwell,  Boston,  18  Pipes  Wine  belonging  to  1st  Co.,  amounting 
f  Invoice  to  $6480.     My  half  is          ....    $3240. 
Paid  shipping  expenses  in  cash 60. 

=  : -^  15.  .====..==^^ 


*  Shipped  by  the  Erie,  Truck,  master,  and  consigned  to  Baring  &  Co., 
Liverpool,  for  sale  on  1st  Co.  account, 


400  Barrels  Flour  from  store,  ^ 
150       //  II      put  on  board  by  Wm.  Hay,  @  $6,     $900. 

Wm.  Hay  passes  his  Note  for  insurance       .         .         .    165. 
I  have  paid  the  other  expenses  in  Cash       .         .         .         T 

My  half  is         .         .  1799. 

Wm.  Hay's  do.  is      .  1799.     $3598,  as  cash  this  date. 


$2400. 

1065. 
133. 


14941 


^  Received  from  J.  Taylor  &  Co.,  of  New  Orleans,  invoice  of  100  Bales 
Cotton  shipped  to  London  on  the  2d  inst.,  consigned  to  R.  Morris 
for  sale  on  their  acct.,  Morris'  acct.,  and  on  my  acct.,  each  ^. 
My  (2d  Co.)  I  due  in  cash  2d  inst.,  is 

-  20.  - 


Received  Cash  amt.  of  Warden  &  Bell's  note  due  31st  ulto.,      2011.      I 
//         20  days'  interest  on  the  same        ....  6.70  j 


•  Received  from  J.  Walker  invoice  of  sugars  amounting  to  $4000  which 
he  has  purchased  to  sell  on  our  joint  acct.     My  half  is  . 


1.  This  means  accepting  after  protest — after  Sidney  Wood  &  Co.  refused  to  accept.    The  bill  is  then 

in  the  same  situation  as  that  in  Note  5,  last  page,  and  if  not  protected  here  will  return  under 
damages  against  our  New  Orleans  correspondents,  Taylor  &  Co.  We  of  course  debit  them  for 
the  amount.— Form  XXI.,  p.  120. 

2.  We  have  paid  for  the  whole  shipment,  and  Taylor  &  Co.  and  Morris  are  each  responsible  to  us 

for  their  respective  shares  from  this  date. 

3.  This  is  part  of  the  1st  Co.  property  shipped  to  another  market,  and  our  share  is  charged  to  a  new 

acct. :  therefore  1st  Co.  Sales  must  be  credited  for  our  share. 

4.  We  debit  Hay  for  his  share  of  the  adventure,  and  credit  him  for  what  he  has  paid  upon  it.    It 

would  have  been  equally  correct  to  have  debited  him  for  the  balance  only.— Note  4,  p.  28. 
6.  We  credit  Taylor  &  Co.  for  our  share  of  this  adventure  because  they  have  paid  the  amount  for 

us,  and  we  still  owe  them  for  it. 
6.  We  call  this  an  adventure  because  we  do  not  manage  the  sales. 

__ 


3300 


3598 


1600 


2017 


2000 


70 


NEW  YORK,  April  10,  1867. 


8 
5 
11 
1 
9 
2 
4 
8 

11 
9 
2 


11 
3 
1 
3 
2 

11 

8 

2 

8 
6 

11 

7 


*  John  Taylor  &  Co.,  Dr.  to  Sundries 
To  Bills  Payable 
//    Commission 


'Sundries,  Dr.  to  Sundries 
J.  Taylor  &  Co.     . 


R.  Morris 

2d  Co.  Shipment  to  London 

To  Mdse 

//   1st  Co.  Sales    . 

//   Cash     .... 

//   Bills  Payable    . 

//   Commission  . 


'  1st  Co.  Shipment  to  Boston,  Dr. 
To  1st  Co.  Sales 
//   Cash         .... 
=========       15. 


to  Sundries 


$14941 


Sundries,  Dr.  to  Sundries 
*lst  Co.  Shipment  to  Liverpool 
Wm.  Hay 
To  Mdse 

//   Wm.  Hay     . 

n   Cash         .... 


83598, 


2d  Co.  Shipment  from  N.  Orleans  to  London,  Dr. 

•^To  J.  Taylor  &  Co 

- ^      20.  -= 


Cash,  Dr.  to  Sundries 
To  Bills  Receivable    . 
II   Profit  and  Loss 


*  3d  Co.  Adventure,  Dr. 
To  J.  Walker 


604 


4980 
4980 
4980 


601 
3 


33 
33 
34 


3800 


1799 
1799 


1600 


2017 


2000 


4600 

9500 

300 

145 

396 


3240 
60 


2400 

1065 

133 


1600 


70 


2011 
6  70 


2000 


TEACHER'S    EXAMINATION. 

1.  What  does  accepting  supra  protest  mean? 

2.  Why  dehit  Taylor  &  Co.,  and  Morris,  for  their  shares  at  this  time? — Repeat  note 

3,  p.  43. 

3.  Why  is  1st  Co.  Sales  credited  for  this  amount,  seeing  the  goods  are  not  yet  sold  ? 

4.  Why  is  Hay  both  debited  and  credited  in  the  same  entry  ? 

6.  Why  credit  Taylor  &  Co.,  seeing  we  have  not  received  any  thing  from  them? 
6.  Why  do  we  call  this  an  adventure  ? — See  note  9,  p.  42. 


87 


10 


NEW  YORK,  April  20,  1867. 


*  Received  by  the  Vixen,  Chase,  Master,  from  R.  Morris,  London,  40  bales 
Brussels  Carpeting,  amounting  "^  Invoice  to  £2700  sterling,  consigned 
to  me  for  sale  on  2d  Co.  account.     My  i  is  £900,  due  lOth  instant, 

equal  to $4000. 

Gave  my  bonds  (^  6  mos.  to  the  Custom-House  for  duties      .     3000. 
Paid  Freight  and  other  charges  in  Cash    ....  185. 

*Piiid  my  note  in  favor  of  Capt.  Rivers,  which  has  lain  over  under  protest 


since  the  18th  instant,  for 
4  days'  Interest,  $5,33,  protest,  &c.,  $1.72 

Sold  him  on  account  800  bbls.  1st  Co.  Flour 
Paid  the  balance  in  Cash      .         .         .         . 


$8000. 
7.05 


4800. 
3207.05 


8007.05 


•  Received  Cash  from  W.  Hay  for  his  note  due  3d  inst. 

19  days'  Interest  on  same  $4.80,  postages  25 

^   ^ -^==         23.         ..=.= 


1515.75 
5.05 


Paid  Cash  for  J.  Taylor  &  Co.'s  draft  on  Sidney  Wood  &  Co.     Accepted 
by  me  on  the  10th  instant,  for •      . 

^^^= --=^==  25.  ^=^  ' -=:^ 


*  Received  advice  from  R.  Morris  that  on  the  20th  ultimo  Capt.  Bowline 

cancelled  his  Bottomry  Bond  on  the  Ship  Hunter,  by  paying  Morris  the 
amount  on  my  account      .         .         .         .         .         .  $2000. 

Also  the  premium  upon  the  same       .....  400. 

*  Received  from  J.  Walker  account  sales  of  the  Invoice  of  Sugars  bought  by 

him  on  the  20th  instant ;  net  proceeds  $5000. 

Myhalfis 


3d  Co.  Adventure  now  closes  with  a  gain  of    . 

-^ i       —  =     May  1.      - 

•Ree'd  Cash  for  a  Quarter's  Rent  of  House  49  Cedar  St. 

//      5  per  ct.  dividend  on  City  Bank  Stock    . 

w      5  per  ct.         //        on  Merchants'     //  . 

tt      Quarter's  Rent  of  House  44  Broadway  . 


800. 
500. 
250. 
150. 


'  Received  Cash  Freight  of  Ship  Hudson 
Freight  and  Passage  money  of  Ship  Roscoe 


3500. 
4200. 


Paid  Cash  for  two  Bonds  to  the  Custom-House  for  $1111.11  each 


1.  We  are  only  accountable  to  Morris  for  our  own  share  of  this  shipment. 

2.  We  can  never  debit  the  Bill  account  for  more  than  the  face  of  the  note— the  same  as  it  was  credited. 

3.  If  we  cre<iit  the  Bill  account  for  any  more  than  it  was  debited  when  the  note  was  received,  it  will 

throw  the  account  that  much  out  of  balance. 

4.  R,  Morris  gets  in  debt  to  us  for  the  amount  he  acknowledges  to  have  received  for  us. 

5.  We  credited  him  for  our  share  of  the  purchase  money  when  he  bought  the  goods;  now,  as  he  has  sold 

the  property,  and  got  our  share  of  the  net  proceeds  in  his  hands,  we  debit  him. 

6.  These  different  accounts  must  have  credit  for  these  sums,  because  they  have  brought  us  in  theg© 

amounts. 
7. 1  am  sole  owner  of  the  Hudson,  but  only  part  owner  and  agent  of  the  Roscoe. 
R  These  are  Bills  Payable :  we  have  opened  no  Custom-IIouse  bonds  account. 


7185 


8007 


1520  80 
601 

2400 

2500 
500 

1200 

7700 
2222  22 


83 


NEW  YORK,  April  20,  1867. 


10 


12 
5 
4 
2 


4 
12 


7 
11 

11 
6 


12 

10 

10 

4 

4 


12 

6 
9 

4 
12 


2d  Co.  Sales,  Dr.  to  Sundries 
1  To  R.  Morris     .... 
//    Bills  Payable    .... 
//    Cash   .         .         . 

=— ---"^— '    22.       == 

Sundries,  Dr.  to  Sundries,  $8007.05. 
« Bills  Payable         .         .         .         . 
Profit  &  Loss     .... 
To  1st  Co.  Sales    .... 
//    Cash 


Cash,  Dr.  to  Sundries 
» To  Bills  Receivable  . 
//   Profit  &  Loss    . 


23. 


Bills  Payable,  Dr. 
To  Cash 


25, 


*  B.  Morris,  Dr.  to  Sundries 
To  Bills  Receivable 
N    Profit  &  Loss 


30. 


»  J.  Walker,  Dr.       . 
To  3d  Co.  Adventure 


3d  Co.  Adventure,  Dr.  (to  close  acct.) 
To  Profit  &  Loss        .         .         .         . 


7185 


May  1, 


Cash,  Dr.  to  Sundries     .... 
*  To  House  49  Cedar  Street,  Received  Rent 


8000 

7 


1520 


601 


2400 


2500 


500 


1200 


05 


80 


//    City  Bank  Stock 

//    Merchants'  do. 

//    House  44  Broadway 

'  Cash,  Dr.  to  Sundries 
To  Ship  Hudson    . 
//    Ship  Roscoe  and  owners 


Dividend 

do. 
Rent 


Rec'd  Freight 


8  Bills  Payable,  Dr. 
To  Cash   . 


Paid  my  two  Custom-house  bonds 


7700 


2222 


4000 

3000 

185 


!  4800 
i  3207 


1515 


m 


75 


5  p5 


22 


1.  Why  not  credit  ilorris  for  the  whole  shipment? — Repeat  note  8,  page  43. 

2.  As  it  cost  us  $8007.05  to  take  up  this  note,  why  not  debit  the  Bill  account  for 

that  amount? 

3.  Why  not  credit  Bills  Receivable  for  the  $1520.80,  having  received  that  amount 

for  the  note? 

4.  Why  is  Morris  Dr.? 

6.  Why  debit  Walker  in  this  case  ? 

6.  Why  is  this  sum  credited  to  so  many  different  accounts? 

7.  Why  not  credit  the  Ship  Roscoe  and  the  Ship  Hudson  alike  here? 

8.  Why  not  debit  Custom-house  Bonds  account? 


601 


2000 
400 


2500 


500 


300 
500 
250 
150 


3500 
4200 


2222 


22 


89 


u 


.NEW  YORK,  May  4,  1867. 


>Sold  Finlay  &  Co.  my  50  shares  Merchants'  Bank  Stock  @  110,  $5500. 
Bought  of  them  in  part  payment  500  bbls.  Mess  Pork  for  the  joint  ac- 
count of  myself  and  Wm.  Hay    .      @$10    .         .         .         .     5000. 
Keceived  the  balance  in  Cash  ......       500. 

Wm.  Hay's  half  is   .         .         .         .     2500 

My  half  is 2500    $5000  as  cash  this  day. 

_ // 

Merchants'  Bank  Stock  now  closes  with  a  gain  of  .... 

=========.^  .    8.  

Paid  Cash  for  my  notes  in  the  Insurance  Office  .         .         .     $161.45 

and 41.25 

•  ■  

//  . : 

Sold  James  Walker  my  Bill  at  60  days'  sight  on  R.  Morris  for  £1000 

sterling 4444.44 

8  per  ct.  Premium 355.56 

"Received  in  payment  Walker's  Receipt  for  the  balance  I  owe 

him    .... 600. 

Cash  for  the  balance 4200^ 

4800. 

—  —  13.  ====:======= 

Delivered  to  James  Walker,  for  sale  on  our  joint  account,  an  Invoice  of 
Sugars,  amounting  to  $3000.     My  half  is      ....     1500. 

Received  Walker's  Check  on  the  Bank  for  his  half  .         .         .     1500. 

•  ' — 

_ — __. .^-  // 

Sold  Warden  &  Bell  120  pieces,  4250  yds.,  2d  Co.  Carpeting,'  @  $2,  $8500. 
Received  in  payment  their  draft  at  30  days'  sight  on  J.  Landis  &  Co.,  ^of 
New  Orleans,  for  $7000,  at  2  per  ct.  disct.       .         .     6860. 

Gash  for  the  Balance 1640.     $8500. 

2  per  ct.  Discount  on  the  Bill  is  ....  140. 

_  18.  

Sold  in  Austin  &'  Co.'s  Auction   Room,   55  pieces  2d   Co.  Carpeting. 

Net  proceeds  '^  their  acct.  sales  $3560. 
Received  in  payment  their  note  at  60  days,  for        .         .         .     $3000. 

Cash  for  Balance 560. 

I  take  the  remaining  55  pieces  to  my  account  at  market  prices       3814. 

I  close  2d  Co.  Sales,  rendering  each  partner  a  copy  of  the  account. 
Total  Sales  $15,874,  Charges  posted  $3185. 

*  My  Storage  is  $3,  Advertising  $10  ....       $13. 

//    Commission  2i  per  ct.  on  $15,874     ....       396.85 
R.  Morris's         J  net  proceeds  due  this  day  is  ...     4093.05 

J.  Taylor  &  Co.  J  do.  do 4093.05 

My  i  do.  4093.05 

My  i  first  cost  was       4000.         gain      .         .  93.05 


1.  Merchants'  Bank  Stock  is  the  thing  delivered,  and  is  therefore  credited. 

2.  We  debit  Walker,  because  we  get  out  of  his  debt  for  this  amount. — See  Led.,  p.  107. 

3.  The  rule  is  always  to  debit  or  credit  a  bill  for  its  face — not  for  what  it  passes  ih  payment. 

4.  We  deduct  the  whole  charges,  $3594.85,  from  the  total  sales,  $15,874,  which  leaves  $12,279.15  net  pro- 

ceeds, divided  by  3  gives  each  partner's  share  $4093.05. — See  Form  V.,  p.  118. 


90 


5500 


750 


202 


4800 


3000 


8640 


7374 


8689 


NEW  YORK,  May  4,  1867. 


11 


4 

12 

3 

9 

4 
6 

4 
12 


7 

12 

5 

6 

1 
11 
12 


3 
12 
12 

6 

12 
3 

12 
1 

12 
6 

8 
5 

8 


*  Sundries,  Dr.  to  Merchants'  Bank  Stock 
Cash  Received  of  Finlay  &  Co.  . 
Wm.  Hay,  for  his  half  invoice 
1st  Co.  Sales  for  my  half  do. 


Merchants'  Bank  Stock,  Dr.  (to  close) 
To  Profit  and  Loss,  for  net  gain . 

=====.=       8.        = 


Bills  Payable,  Dr 

To  Cash  Paid  my  two  notes  in  the  Marine  Office 


Sundries,  Dr.  to  Sundries,       .... 
*  James  Walker,  for  his  Receipt  in  full 

Cash  Received  of  Walker      .... 

To  R.  Morris,  for  my  bill  on  him 

//   Profit  and  Loss  for  8  "^  ct.  Premium  on  the  same 
=====  13.        : 


$4800 


Sundries,  Dr.  to  Mdse.  delivered  J.  Walker  on  joint  acct. 
3d  Co.  Adventure  for  my  half  .  .  .  .  . 
Cash  Rec'd  for  W^alker's  half  .         . 


Sundries,  Dr.  to  Sundries, 
'Bills  Receivable  for  draft  on  Landis  &  Co. 
Cash  for  balance         ..... 
To  2d  Co.  Sales  for  sale  of  carpeting 
//   Profit  and  Loss  for  2  "^  ct.  discount  on  draft 

18.  ==: 


.    $8640 


Sundries,  Dr.  to  2d  Co.  Sales 
Bills  Receivable,  for  Austin  &  Co.'s  Note 
Cash  Received  of  Austin  &  Co.      . 
Mdse.  for  carpets  taken  to  my  acct. 


*2d  Co.  Sales,  Dr.  to  Sundries,  to  close  acpt. 
To  Profit  and  Loss,  for  storage  and  net  gain 
u   Commission  2J  f  ct.  on  $15874     . 
//   R.  Morris,  for  his  i  net  proceeds 
//  J.  Taylor  &  Co.  for    //  ff         .         . 


500 
2500 
2500 

760 


202 


600 
4200 


1500 
1500 


7000 
1640 


3000 

560 

3814 

8689 


5500 


70 


750 


202   70 


4444   44 
355   56 

3000 


8500 
140 

7374 


106  05 

■   896  85 

4093  05 

4093  05 


1.  Why  credit  Merchants'  Bank  StocK? 

2.  Why  debit  Walker  ? 

3.  Why  should  not  Bills  Receivable  be  debited  for  $6860  only,  what  it  was  received 

in  payment  for?— Note  2,  B.  Receivable  acct.,  p.  103. 

4.  How  do  we  settle  this  transaction  and  find  each  partner's  share  ? 

Note. — As  some  merchants  desire  their  Journals  to  exhibit  a  brief  recapitula- 
tion of  the  Day  Book  entries,  we  are  journaMzing  the  month  of  May  in  this  manner 
as  an  illustratioV.  The  learner  will  perceive  from  this,  that  by  particularizing  the 
transactions  more  minutely,  he  can  construct  his  Day  Book  on  the  Journal  form, 
and  post  direct  from  it  to  the  Ledger, without  the  use  of  a  Journal:  which  in  any 
ordinary  business  is,  therefore,  not  required. 


91 


12 


NEW  YORK,  May  18,  1867. 


*  Renewed  W.  "Wallace's  Note  of  $1200  due  15tli  inst.,  for  the  same  amount 
for  3  months.     Received  Interest,  &c.,  in  cash  ..... 

^ ^       25.         =--=----=- -^=^ 


Sold  for  cash  at  1  "^  ct.  premium  to  C.  Hartwell,  Warden  &  Bell's  draft 
on  Landis  &  Co.  of  New  Orleans  .         .         .         .         .  7000. 

1  '^  ct.  premium  is    .         .         .         .         .         .         .  70. 

'H.Parnell  has  failed,  and  the  note  which  I  hold  against  him  for  Lenox's 

Estate,  due  22d  instant,  is  lost 1340. 

J.  Day  has  also  failed^  and  the  note  which  I  hold  against  him 

400. 


18    90 


^070 


due  19th,  is  lost 


j  Shipped  by  the  Columbia,  G-ray,  Master,  by  order  and  for  account  of  R. 

I      Morris,  London,  due  in  cash  this  day. 

!  1000  Barrels  Flour  from  store,  @  $5        .         .         .         .         $5000. 

'  Shipping  charges  paid  in  cash      .         .         .         .         .         .         300. 

Passed  my  note  to  the  National  Insurance  Co.  for  premium  112.30 

Commission  for  shipping  5  "^  ct.  on  $5300       .         .         265. 

//  for  effecting  insurance  i  "f  ct.  on  $5565  13.92     278.92 


1740 


Shipped  by  the  same  vessel  and  consigned  to  R.  Morris  80  packages  Mdse. 

received  from  Hartwell  &  Thorndike,  Boston 
My  comm.  receiving  and  forwarding  50  cts.  "^  package,  due  June  30 
Forwarded  Hartwell  &  Thorndike  particulars  for  Insurance 

=z-=z.=:^===z June   1.  =  ^=n.:rr=z= 


Bot.  of  Warden  &  Bell  2400  Barrels  Genesee  Flour  @  $5.      Amt. 

Invoice  $12000.     Sold  them  in  part  payment 
50  pieces  English  Prints  @  $4       .         .         .         .         .  $200. 

8  pieces  320  yards  Brussels  Carpet  @  $2  .         .         640.     840. 

I  am  to  pay  them  cash  on  the  18th  instant     .       10000. 
'  And  to  give  my  note  at  60  days  for  the  balance         1160.  11160. 


Received  from  R.  Morris  his  Account  Sales  of  2d  Co.  Shipment  from 
*New  Orleans  to  London.     Net  proceeds  £1435  10s.  sterling. 
.   My  i  is  £478  10s.  due  April  15,  equal  to  .         .         2126.66 

Also  sales  of  2d  Co.  Ship't.to  London,^  "Cambria.''  N.P. 

£3800  5s.  stg.     My  i  £1266  15s.  due  Apr.  30,  equal  to  5630. 


5691  I  22 


40 


12000 


I  now  close  the  following  accounts,  viz. : 

2d  Co.  Shipment,  New  Orleans  to  London,  with  a  gain  of 
2d  Co.  Shipment  to  London,  with  a  gain  of 


526.66 
649.66 


Received  from  C.  Hartwell  Account  Sales  of  18  Pipes  Wine  shipped  to 
him  for  sale  on  1st  Co.  acct.  10th  Apr.  last.     N.  P.  due  June  10 


7756 


1176 


6480 


66 


32 


1.  The  note  being  renewed  at  the  face,  there  is  no  occasion  for  passing  it  through  the  books,  though  it 

must  appear  on  the  Bill  Book.— See  Bill  Book  May  18,  p.  48. 

2.  Parnell's  note  was  credited  to  Lenox's  Estate,  and  is,  therefore,  not  our  loss. 

3.  We  must  for  the  present  credit  Warden  &  Bell  for  this  $11160,  and  they  will  be  debited  for  the  caah 

and  note  when  delivered  them. — See  June  18,  p.  94. 

4.  He  has  sold  the  goods  and  got  our  money  in  his  hands. 


92 


NEW  YORK,  May  18,  1867. 


12 


12!   »Cas]i,  Dr .         .         . 

6       To  Profit  &  Loss,  for  Interest,  &c.,  received  for  renewing 
Wallace's  note  for  81200         .... 

================ ,      25.       =- 


12 

3 


3 

10 

6 

5 
1 
12 
4 
8 


Cash,  Dr.  to  Sundries    . 

To  Bills  Receivable  for  Warden  &  Bell's  bill  sold  to  C. 

Hartwell 

II  Profit  &  Loss  for  1  per  ct.  Premium  received  on  the  same 


Sundries,  Dr.  to  Bills  Receivable    .... 

^  Lenox's  Estate  for  H.  Parnell's  note  lost  by  his  failure 

Profit  &  Loss  for  J.  Day's  note  lost  by  his  failure    . 


R.  Morris,  Dr.  to  Sundries  for  Shipment  per  "  Columbia" 
To  Mdse.  for  1000  bbls.  Flour  from  store  @  15  . 

//    Cash  paid  Shipping  Charges  on  the  same  . 

//   Bills  Payable  for  my  note  passed  for  Insurance 

II   Commission  for  Shipping  5  per  ct.  on  85300     8265. 

II  II  for  effecting  Ins.  on  5565  i  per  ct.         13.92 


Robt.  Morris,  Dr 

To  Commission  for  Receiving  and  Forwarding  80  packages 
of  goods  from  Hartwell  &  Thorndike 


Mdse.,  Dr.  to  Sundries 
To  Mdse.  . 
II   Warden  &  Bell 


*R.  Morris,  Dr.  to  Sundries  .... 

To  2d  Co.  Shipment  from  New  Orleans  to  London 


//   2d  Co.  Shipment  to 'London 


Sundries,  Dr.  to  Profit  &  Loss         .... 
2d  Co.  Shipment  from  New  Orleans  to  London,  to  close 
2d  Co.  Shipment  to  London,  to  close 


C.  Hartwell,  Dr. 

To  1st  Co.  Shipment  to  Boston 


1.  Wliy  is  not  Bills  Receivable  debited  for  this  renewal,  like  that  on  March  17? 

2.  Why  not  debit  Profit  &  Loss  for  both  of  these  losses? 

3.  Why  credit  Warden  &  Bell  for  this  amount,  when  it  is  to  be  paid  in  a  particular 

way?  . 

4.  Why  is  Morris  uebited  for  these  sums  ? 


18 


7070 


1340 
400 

5691 


40 

12000 

7756 

526 

649  66 

6480 


90 


22 


66 


66 


18 


7000 
70 


1740 


5000 
300 
112 

278 


40 


840 
11160 


2126 
5630 

1176 


6480 


90 


30 
92 


60 


32 


13  NEW  YOEK,  June  1,  1867. 


Ust  Co.  Shipment  to  Boston  now  closes  as  follows — 

Total  Sales  $6480 ;  Charges  Posted  $60. 
My  Commission  on  $6480  @  2^  per  ct.  is        .         .  .       162. 

Wm.  Hay's  half  net  proceeds  due  this  day  is        .  .         3129. 3291 

The  balance  of  the  acct.  on  the  Ledger  is  $3180. 

My  half  first  cost  is        .         .         .  $3240. 

My  half  net  proceeds  is      .         .         3129.     Loss  IIL     $3291. 

12. 


Received  Cash  from  Warden  &  Bell  for  their  note  due  this  day  2100 


^  Bought  for  Cash  at  8  per  ct.  premium,  of  R.  Banks  &  Co.,  for  the  account 
of  R.  Morris,  their  Bill  @  60  days'  sight  on  Grihhs,  Son  &  Bright,  Lon- 
don, for  £1500  sterling,  which  I  remit  to.  Morris       .         .        $7200. 

My  i  per  ct.  for  Investing,  due  this  day 18.  7218 

-=--====--==-==         18.  ============. 


Paid  Warden  &  Bell  balance  due  them  on  purchase  of  Flour  1st  instant- 

Check  on  the  City  Bank  for 10000. 

My  note  @  60  days  for  the  balance 1160.        11160 


James  Walker  has  returned  the  whole  invoice  of  goods  which  I  placed  in 

his  hands  for  sale  on  joint  account  13th  May  last      .         .         3000. 
My  half  is         ...         .         $1500. 
»Walker'shalf  is.         .         .         .     $1500.         $3000. 

Walker  takes  up  his  note  of  $2063,  due  9th  October  next, 

and  pays  me  the  balance  in  Cash         .         .         .         .         .         563.  3563 


*The  Ship  Columbia  in  which  I  shipped  and  insured  on  May  31,  for  R. 

Morris,  goods  amounting  to  $5565,  is  lost.     Received  payment  for  the 

loss  from  the  National  Insurance  Office  as  follows — 

My  Premium  note  held  by  the  office  for $112.30 

Cash  for  the  balance — due  Morris  this  day      .         .         .         .       5452.70      5565 


»  Bought  of  Joel  Post,  his  Bill  on  Baring  &  Co.  @  60  days'  sight  for  £450 

sterling $2000. 

Premium  8  per  ct 160.       \    2160 

Paid  him  in  his  note  due  15th  instant  .     500. 

Cash  for  the  balance        ....       1660^        $2160. 

--—- 25.  ' 


•  Bought  10  tierces  Refined  Sugars  at  Austin's  auction  room 

for  Cash $800. 

Sold  them  at  the  same  place  to  Gr.  Barron  on  his  note  at  30 

days  for  $980.     Gain  on  the  transaction        ....       180.  980 


1.  Thft  Rule  is,  always  to  deduct  all  charges,  including;  commission,  from  total  sales. — See  note  4,  p.  90. 

2.  Our  Profit  &  Loss  account  is  not  to  be  debited  for  this  premium— we  paid  it  for  Morris. 

3.  Wo  have  taken  back  Walker's  share  of  these  goods  in  part  payment  of  his  note. 

4.  We  get  in  debt  to  Morris,  having  collected  this  money  for  him  of  the  Insurance  Office. 

5.  We  have  here  received  one  Bill  lleceivable,  and  given  up  another. 

6.  Property  can  never  be  delivered  or  crediYed, until  it  is  received  anddebited:  this  merchandise  having 

been  sold  before  itwas  brought  home  or  entered,  the  transaction  cannot  effect  that  account.    Bills 
Receivable — the  thing  received— is  Dr. ;  Cash  and  Profit  &  Loss,  Cr. 


91 


NEW  YORK,  June  1,  1867. 


U 


13 


11 
6 
3 

8 

12 
3 

5 

12 

8 

5 

12 

4 


1 
12 

3 
11 

5 

4 

12 


8 

6 

3 

12 

3 

12 

6 


Sundries,  Dr.  to  Sundries 

1st  Co.  Shipment  to  Boston,  to  close  acct. 

Profit  &  Loss 

To  Wm.  Hay    .  . 

//   Commission 

=-       12.       = 


$3291 


Cash,  Dr.  . 

To  Bills  Receivable 


'  R.  Morris,  Dr.  to  Sundries 
To  Cash 
//   Commission  . 


1$. 


Warden  &  Bell,  Dr.  to  Sundries,  to  close  acct. 

To  Cash 

//   Bills  Payable    . 

It 


Sundries,  Dr.  to  Sundries  . 

'Mdse 

Cash  .... 

To  Bills  Receivable        .         .  ^ 

//   3d  Co.  Adventure,  to  close  acct, 
^^ 


*  Sundries,  Dr.  to  R.  Morris 
Bills  Payable    . 
Cash     .... 


Sundries,  Dr.  to  Sundries  . 
^  Bills  Receivable     . 

Profit  &  Loss     . 
To  Bills  Receivable 

//   Cash    .... 
====^==^       25. 


Bills  Receivable,  Dr.  to  Sundries 

« To  Cash 

//   Profit  &  Loss    . 


t563 


2160 


1.  Explain  how  the.net  proceeds  is  found  here.    The  student  will  not  understand 

this  (!ntry  without  repeated  study. 

2.  Why  is  Profit  k  Loss  not  debited  for  the  premium  we  paid  on  this  Bill  ? 

3.  Walker  paid  us  for  this  $1500  worth  of  goods  on  the  13th  May,  why  is  he  not 

now  credited  for  the  amount,  having  returned  the  goods? 

4.  Why  credit  Morris  for  this  money  ? 

6.  Why  is  the  Bills  Receivable  account  both  debited  and  credited  in  the  same 
entry  ? 

6.  Why  is  the  Merchandise  account  not  to  be  credited  for  this  $980,  seeing  mer- 
chandise is  the  thing  delivered? 
N 


UNIVERSITY 

CALIFOHHi> 


3180 
111 

2100 

ft 
7218 

11160 


3000 
563 


112 
5452 


2000 
160 


980 


3129 
162 


2100 


7200 
18 


loooo 

1160 


2063 
1500 

5565 


500 
1660 


800 
180 


95 


14 


NEW  YORK,  June  25,  1867. 


*  William  Hay  and  myself  having  agreed  to  close  our  speculations  on  joint 
account,  he  has  taken  delivery  of  his  half  Invoice  of  Pork,  bought; 
4th  May  last,  and  which  remained  unsold,  and  I  carry  my  half  to  my  I 
own  Merchandise  account  ....... 


*  Close  1st  Co.  Sales.     Total  sales  effected  for  200  bales  Cotton  and  800 

bbls.  Flour,  $14300. 

My  Commission,^ J  per  cent.,  on  the  same  is   ....  357.50 ! 

Wm.  Hay's  half  net  proceeds  paid  him  in  cash  is     .         .         .  6971.25 ' 


My  net  gain  is 


471.25 


28. 


I  My  Commission  for  collecting  $800  for  Estate  A.  Lenox,  @  5  per  cent.,  is 


•Received  advice  from  Baring  &  Co.,  of  Liverpool,  of  the  Sale  of  1st  Co. 
Shipment  of  Flour,  shipped  by  the  ''Erie"  15th  April  last,  net  pro- 
ceeds £900  sterling^  $4000,  which  they  remitted  agreeably  to  my  orders 
to  R.  Morris,  London,  on  my  account,  lObh  ultimo      .         .    $4000. 

Premium  on  Exchange  is  8  per  ct 320. 

Wm.  Hay's  half  is  .         .         .     2160. 

My  half  is       ...         .     2160.     $4320. 


Received  advice  from  R.  Morris  that  he  received  Cash  £5,62  10s.  on  the 

20th  ultimo.  Freight  of  Ship  Roscoe         ....    $2500. 
*  The  present  rate  of  Exchange  on  London  is  8  per  ct.  prem.    .    200^ 


*  I  close  the  acct.  of  Ship  Roscoe  and  owners.     Total  receipts  of  Freight 

is  $8700.     Disbursements  to  date  $1250. 

My  2i  Commission  on  Freights  and  Passages  collected  is  .         .  217.50 

C.  Hartwell's  J  net  proceeds  is 3616.25 

My                 i            do.                1808.13 

Wm.  Hay's     i            do.                1808.12 

30.        =-- — 


Received  advice  from  R.  Morris  that  he  has  sold  my  I  of  Ship  Roscoe. 
Net  proceeds  due  30th  August,  £1462  10s 


I  now  close  1st  Co.  Shipment  to  Liverpool  with  a  gain  of 
Also  Ship  Roscoe  my  i  with  a  gain  of  . 


361. 
3308.13 


Paid  Cash  for  Expenses,  ^  Expense  Book,  from  1st  January  to  date 


*  Balance  of  Interest  due  R.  Morris,  "^  acct.  current  rendered,  is 


1.  Hay  has  paid  for  his  share  of  these  goods,  therefore  cannot  be  debited  when  he  takes  them  away. 

2.  Deduct  all  cliarges  from  the  total  sales.— See  Note  3,  p.  80,  and  Note  4,  p.  90. 

3.  Profit  &  Loss  or  Exchange  must  be  debited  for  both  these  sums,  because  the  gain  on  the  exchange 

forms  part  of  the  profits,  for  which  we  are  accountable  to  our  associates  in  the  transactions. 

4.  This  is  a  settlement  of  all  our  transactions  as  agent  for  the  ship  up  to  this  date.    We  close  her  acct. 

and  carry  the  dividends  to  the  credit  of  the  other  owners. 

5.  This  is  found  by  drawing  out  his  account  current.— See  Form  1,  p.  114. 


Paid  Cash  J.  Carpenter  &  Co.'s  Bill  for  Repairs  of  House  49  Cedar  Street : 


25001 


7800 


280 


40 


432U 


270U 


7450 

6500 

3669 

1099 

33 


13 
23 

OG 


96 


NEW  YORK,  June  25,  1867. 

» Mdse.,  Dr 

To  1st  Co.  Sales 

I,  

'  1st  Co.  Sales,  Dr.  to  Sundries,  to  close  acct.    . 
To  Commission  ....... 

//    Cash         ........ 

II   Profit  &  Loss        .         .1 

=========       28.       ====== 

House  49  Cedar  Street,  Dr.    .         . 

To  Cash 

I,  

Estate  of  A.  Lenox,  Dr. 

To  Commission  ....... 

II  

^  Sundries,  Dr.  to  Sundries       ....       $4320. 

R.  Morris 

Profit  &  Loss  ....... 

ToWm.  Hay 

//    1st  Co.  Shipment  to  Liverpool  .... 

7  

Sundries,  Dr,  to  Ship  Roscoe  &  owners 

R.  Morris 

'  Profit  &  Loss 

//  

*  Ship  Roscoe  &  owners,  Dr.  to  Sundries,  to  close  account 

To  Commission 

//    C.  Hartwell       ....... 

u    Ship  Roscoe,  my  \        .....         . 

If   Wm.  Ha^ 

30.  

R.  Morris,  Dr.  ........ 

To  Ship  Roscoe,  my  i 

I,         

Sundries,  Dr.  to  Profit  &  Loss 

1st  Co.  Shipment  to  Liverpool,  to  close  acct.    . 

Ship  Roscoe,  my  i,  to  close  account    .... 

: II 

Profit  &  ^oss.  Dr.  to  Sundries        .... 

To  Cash 

^  II   R.  Morris 


14 


9 

8 

12 

6 


10 
12 


10 

8 


5 

6 

3 

11 


9 
8 
12 
9 
3 


6 

11 

9 


6 

12 

5 


1.  Why  is  Hay  not  debited  for  the  proportion  of  these  goods  that  he  has  taken 

away  ? 

2.  How  is  the  net  proceeds  and  Hay's  share  found? 

3.  Why  should  we  debit  our  Profit  &  Loss  account  for  these  premiums  on  Ex- 

change ? 

4.  What  is  the  object  of  this  entry? 

6.  How  is  this  balance  of  interest  ascertained? 


97 


2500 


7800 


280 


40 


4000 
320 


2500 
200 


7450 


6500 


361 

3308 


1132 


13 


29 


2500 


357 

6971 

471 


280 


50 
25 
25 


40 


2160 
2160 


2700 


217 
3616 

1808 
1808 


6500 


3669 


50 
25 
13 
12 


13 


1099  23 
33  06 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 
ON  THE  DETECTION  OF  ERRORS. 

1.  If  the  Day  Book,  Journal,  and  Ledger  have  been  carefully  checked  according  to  our 
preyious  directions,  we  may  presume  that  all  is  thus  far  correct.  If  our  trial  comes  out 
incorrect,  our  attention  will,  therefore,  be  first  directed  to  its  own  additions  and  those  of  the 
Ledger.  Then  see  that  all  the  accounts  are  taken  off  correctly,  and  upon  the  proper  side  of 
the  sheet — that  the  amounts  are  correctly  forwarded  from  one  page  to  another.  Then  exa- 
mine the  additions  of  all  the  Journal  entries,  to  be  certain  that  the  debits  and  credits  are  equal 
upon  that  book.  If  the  error  is  not  found  by  these  liieans,  the  posting  from  the  Journal  to 
the  Ledger  since  the  last  balance  will  have  to  be  all  checked  over  again — a  formidable  under- 
taking in  a  business  of  any  magnitude ;  but  there  is  no  other  means  of  finding  the  error. 

2.  On  the  correction  of  errors  in  the  Ledger. — It  is  not  easy  to  lay  down  pre- 
cise directions  for  correcting  errors  in  all  cases.  But  it  may  be  useful  to  the  learner  to  have 
some  general  directions,  and  also  to  be  guided  in  all  cases  by  the  following  general  rule — 
always  to  make  the  correction  explain  itself,  by  distinctly  referring  to  the  place  of  the  error, 
and  the  error  to  refer  to  the  place  of  correction.  It  is  not  sufiicient  merely  to  write  "  To 
Error"  or  "  By  Error,"  because  either  the  book-keeper,  or  his  successor,  may  be  called  upon 
for  an  explanation  of  an  entry  of  this  kind. 

3.  If  a  post  be  omitted  at  the  proper  date,  enter  it  under  the  date  of  the  last  entry,  with 
the  back  date  in  the  title  column,  in'a  parenthesis,  thus  (July  19)  ;  the  page  of  the  Journal 
in  its  own  column. 

4.  If  two  accounts  be  opened  with  the  same  person,  close  the  one  into  the  other,  "  To,"  or 
'By  A.  B.^s  acct.,  fol." — footing  and  ruling  oiF  the  closed  account,  as  a  settled  account; 

stating  the  particulars  of  such  transfers  at  A.  B.'s  open  account  with  the  Journal  reference. 

5.  If  you  have  posted  an  entry  to  the  wrong  side  of  an  account,  erase  the  figures  in  the 
imount  column,  leaving  a  couple  of  ciphers  to  fill  up  the  space,  and  leave  the  rest  of  the 
line  without  erasure :  it  serves  to  explain  the  alteration  and  does  not  deface  the  page 
Then  make  the  post  to  the  proper  side. 

6.  If  you  have  posted  to  a  wrong  account,  dispose  of  the  error  as  directed  in  the  last 
paragraph ;  then  post  the  entry  to  the  proper  account. 

7.  If  the  same  entry  be  twice  posted,  leave  ciphers  in  the  money  column  of  the  last 
entry  as  before  directed.  If  you  have  room  in  the  title  column,  insert  (see  last  entry)  or 
such  explanation  as  the  case  require,  on  the  same  line  with  the  correction. 

8.  I  do  not  approve  of  correcting  errors  by  counter  entries  if  it  can  be  avoided,  as  it  gives 
the  account  a  distorted  appearance.  The  merchandise  account,  for  .instance,  may  by  this 
means  be  ma^e  to  exhibit  an  amount  of  purchases  and  sales  far  beyond  the  reality ;  while 
the  chief  object  for  keeping  this  account  is  to  show  these  amounts  correctly.  If,  however, 
the  error  is  discovered  after  the  account  is  footed  and  forwarded  (a  thing  that  ought  never 
to  be  done  until  it  is  checked),  then  the  correction  can  only  be  made  by  a  counter  entry,  o^* 
by  footing  the  column  and  deducting  the  error  from  it. 

9.  If  you  have  discovered  an  error  in  the  addition  after  the  account  is  footed  and  for- 
warded, note  it  "short"  or  "over  added,  $ — corrected  June  — ,  fol." — and  make  the  entry 
of  the  correction,  as  usual,  refer  to  the  folio  of  the  error.  If  there  be  many  of  them,  it  may 
be  proper  to  make  a  Day  Book  entry  of  them;  but  this  can  only  be  done  with  those  errors 
requiring  a  double  entry  for  their  correction. 

10.  On  correcting  errors  in  the  Journal. — This  book,  like  the  Ledger,  not  being 
a  book  of  original  entry,  when  it  can  be  done  without  defacing  the  page,  there  is  no  objec- 
tion to  correcting  an  entry  by  erasing  a  figure  or  two,  and  writing  over  them  again.  But 
if  the  error  make  it  necessary  to  cancel  the  whole  entry,  it  must  not  be  scored  nor  scratched 
out,  but  mark  it  in  the  margin  ''  void,  corrected  page," — then  make  the  corrected  entry  in 
the  first  vacancy,  giving  reference  to  the  place  of  error. 

11.  On  correcting  errors  in  the  Day  Book. — It  should  be  a  rule  never  to  erase  any 
essential  particular  of  a  record  on  this  or  any  other  book  of  original  entry.  If  an  error  admits 
of  correction  without  cancelling  the  whole  entry,  it  may  be  done  by  running  the  pen  lightly 
through  the  name  or  figures,  leaving  them  legilDle,  and  writing  the  correct  ones  over  them. 

12.  If  the  error  makes  it  necessary  to  cancel  the  whole  entry,  you  will  proceed  as  just 
directed  for  the  same  purpose  in  the  Journal. 

93 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 
ON  OPENING  AND   CLOSING  THE   LEDGER. 

After  journalizing  a  page  or  a  month  of  the  Day  Book,  the  learner  will  open  his  Ledger 
according  to  the  directions  in  note  1,  page  32.  Then  proceed  as  there  directed  with  the 
posting  and  checking,  until  the  whole  business  of  the  set  is  posted  into  the  Ledger.  Then 
add  up  all  the  accounts  that  remain  open,  inserting  the  amounts  on  each  side  in  pencil  in 
the  margin.  From  these  amounts  make  up  your  trial  balance,  referring  to  those  on  page  3G 
for  the  form,  and  to  our  directions  for  detecting  errors  on  the  last  page  if  it  comes  out  wrong. 

It  may  be  proper  here  to  fix  the  pupil's  attention  distinctly  upon  the  object  for  closing 
the  Jiodger,  which  is  not  only  ^  to  ascertain  the  gain  or  loss,  but  to  record  it  upon  the 
face  of  the  Ledger  in  such  a  manner  as  to  afford  satisfactory  evidence,  at  any  future  period, 
of  the  true  state  of  the  business  at  this  time. — See  Notes  1  to  4,  p.  18. 

For  this  purpose  the  Double  Entry  Ledger  furnishes  the  particulars  for  making  up  ^  two 
statements,  both  of  which  will  exhibit  the  same  result,  1st.  a  detailed  statement  of  gains 
and  losses  in  the  Profit  &  Loss  account,  from  whence  the  stock,  or  original  capital,  receives 
the  result,  and  then  immediately  shows  the  present  net  capital.  The  second  statement, 
which  must  always  confirm  the  correctness  of  the  first  one,  is  made  up  by  presenting  a  de- 
tailed account  of  Effects  and  Liabilities  in  the  Balance  Account,  upon  the  principles  before 
explained,  Notes  2  to  6,  p.  18,  and  Note  4,  p.  32.  The  difference  between  the  amount  of 
the  Effects  and  that  of  the  Liabilities  must  be  the  present  net  capital,  and  if  the  operations 
are  all  correct  will  always  agree  with  the  result  produced  by  the  first  statement. — See  Notes 
1  to  6,  Balance  acct.,  p.  35.  This  agreement  between  the  Stock  and  Balance  account  is 
always  a  certain  consequence  of  this  mode  of  keeping  accounts,  because  the  net  gain  or  loss, 
which  is  finally  made  to  show  itself  in  the  Stock  account,  must  always  produce  a  correspond- 
ing increase  or  decrease  of  property,  which  affects  the  Balance  account  to  precisely  the  same 
extent  that  it  does  the  Stock  account.  Therefore,  as  the  balances  of  property  agreed  with 
the  credit  side  of  stock  (Rule  II.)  at  the  opening  of  the  books,  they  must  continue  to  do  so 
ever  after,  so  long  as  all  the  steps  of  the  process  are  strictly  correct.  The  learner  will  now 
derive  farther  assistance  from  the  following 

RULES  FOR  CLOSING  THE  LEDGER. 

Rui  E  I.  All  personal  accounts  close  To  or  By  Balance. 

11.  All  accounts  of  property  belonging  to  ourselves,  close  as  follows  : — 

Ca&e  \st. — If  all  be  sold,  paid  away  or  lost,  and  the  account  remaining  open, 

close  it  To  OR  By  Profit  &  Loss. 
Case  2c?. — If  all  or  part  remain  on  hand,  credit  the  account  first  Bij  Balance  for 
the  value  remaining  in  hand,  and  if  this  entry  does  not  close  it,  close  as  in 
Case  1st — To  or  By  Profit  &  Loss. 

III.  All  accounts  representing  gain  or  loss,  close  To  OR  By  Profit  &  Loss. 

IV.  When  Profit  &  Loss  has  received  all  its  transfers,  it  closes  into  Stock — never 

into  Balance — and  after  all  other  accounts  are  closed,  Stock  finally  closes 
INTO  Balance. 
V.  Bills  Payable  always  closes  To  Balance  for  the  amount  we  owe  on  our  notes. 
^Vhen  they  are  all  paid,  the  account  must  be  self-closed. 
It  may  be  stated  also  as  a  general  rule,  that  no  property  account  can  close  To  Balance. 
This  part  of  Book-keeping  is  rarely  ever  understood,  without  repeated  and  attentive  study; 
but  as  no  person  is  entitled  to  call  himself  an  accountant  who  cannot  close  a  Ledger,  the 
author  trusts  that  all  learners  who  desire  to  excel  in  the  profession,  will  give  this  part  of 
the  subject  that  attention  which  its  importance  deserves.     If  they  will  but  take  half  the 
pains  to  study  it,  that  he  has  taken  to  explain  it,  their  perseverance  will  be  amply  repaid. 

1.  What  is  the  object  of  closing  the  Ledger? 

2.  What  particulai-8  does  it  furnish  for  the  purpose  of  ascertaining  the  present  net  capital? 
I.  How  do  all  personal  accounts  close? 

II.  How  do  property  accts.  belonging  to  ourselves  close  when  all  is  sold,  paid  away,  or  lost,  and  the  acct.  still  remaining 
open? 
How  if  all  or  part  of  the  property  remain  in  hand? 
III.  How  do  all  accounts  representing  gain  or  loss  close? 
l\.  How  does  the  Profit  &  Loss  account  close,  and  when  does  it  close? 
\'.  How  does  the  Bills  Payable  account  close  while  we  owe  any  thing  on  our  notes? 
How  does  it  close  when  all  our  notes  are  paid? 

99 


INDEX  TO  LEDGER  B. 


A> 

Merchandise          .... 
Morris,  Robert           .... 

1 
5 

Bills  Receivable 

.         .         • 

3 

Morris,  Robert,  Sales     . 

7 

Bills  Payable 

. 

.    4 

Merchants'  Bank  Stock     . 

4 

Balance  Account 

• 

.       13 

Cash     . 

. 

2.12 

New  York  Insurance  Office    . 

8 

Commission 

. 

8 

Carter,  James 

. 

.    5 

^' 

City  Bank  Stock 

.        •         • 

.       10 

D. 

Profit  &  Loss    .         .         , 

6 

Q. 

Estate  of  A.  Lenox 

.        , 

.10 

First  Co.  g^les 

. 

9 

R. 

First  Co.  Shipment  to  Boston 

.11 

First  Co.  Ship^nent 

to  Liverpool 

.      11 

Second  Co.  Sales 
Shipment  to  Liverpool 

12 

7 

G. 

Stock 

Shipment  to  New  Orleans 

1 

•  7 

Hartwell,  Calvin    . 

. 

.12 

Ship  Hudson 

6 

Hay,  William    . 

•        ••        • 

3 

Ship  Roscoe,  my  i    . 

9 

House  44  Broadway 

'      ,        , 

.    4 

Ship  Roscoe  and  owners 

9 

House  49  Cedar  Street 

.       10 

Second  Co.  Shipment  to  London 

11 

Second  Co.  Shipment  from  New  Orleans 

L 

to  London 

11 

J. 

Taylor,  John,  &  Co 

8 

K. 

Third  Co.  Adventure     .         .         .         . 

11 

U. 

Lenox,  Charlotte  . 

, 

.10 

Lenox,  Robert  . 

.      10 

V. 

Walker,  James          .... 
Warden  &  Bell      .         .         .         . 

X. 

Y. 

.  Z. 

7 
5 

Caution  to  Young  Book-keepers. — Always  index  an  account  before  you  head  it  in 
the  Ledger.  Without  this  precaution  you  are  liable  to  forget  it  occasionally,  and  afterwards 
to  open  a  second  account  with  this  same  individual :  and  unimportant  as  this  may  appear 
to  the  inexperienced,  they  will  find  it  will  sometimes  lead  them  into  very  troublesome  and 
vexatious  mistakes. 


100 


Dr. 


STOCK 


Cr. 


1867. 

Jan. 
June 


To  Sundries 
H  Balance 


fol. 


2800 
61544 


64344 


The  learner  is  referred  to  the  Introductory  Ledger  for  all  the 
exercises  that  will  apply  to  this  one. — See  Stock  acct.,  p.  33. 

1.  Is  this  acct.  not  usually  kept  without  any  entries  from  the 
>       time  of  opening  until  closing? 

2.  If  some  part  of  the  Liabilities  were  left  out  at  the  opening 

of  the  Books,  what  account  should  it  be  afterwards 
carried  to  ? 
3. ''"When  collections  of  doubtful  debts  (usually  left  behind  in 
the  old  Ledger  when  opening  new  books)  are  made,  is 
this  not  the  proper  account  to  credit  for  them? 


1867. 

Jan. 
Apr. 
June 


June 


30 


By  Sundries 
//    Mer's  Bank  Stock 
II    Profit  &  Loss    fol. 


64344.50 

2800. 


By  Bal. 


31300 

5000 

28044 


64344 


1.  It  is;  hut  there  is  no  irregularity  in  carrying  an  entry  to  it 

like  that  on  the  10th  April,  above. 

2.  Either  to  this  or  the  Profit  &  Loss  account.    It  would  not 

be  advisable  to  encumber  this  account  with  trifles. 

3.  It  will  make  no  difference  in  the  final  balance,  whether  en- 

tered here  or  at  the  Profit  <fe  Loss  acct. ;  but,  for  rea- 
sons before  given,  large  amounts  of  this  kind  ought  nc 
to  appear  iu  the  Profit  &  Loss.— See  note  3,  p.  30. 


MERCHANDISE. 


1867. 

Jan. 


Feb. 
Mar. 

May 

Jure 


To  Stock 

II  Bills  Payable 

//  Cash 

II  Bills  Payable 

//  J.  Carter 

//  Bills  Beceivable 

//  Sundries 

//  Bills  Receivable 

II  Sundries 

//  Morris'  Sales 

//  2d  Co.  Sales 

//  Sundries 
II  n 

II  1st  Co.  Sales  50830.10 

//  Profit  &  Loss    fol. 


3000 
1000 
1800 
1600 
200 
500 

11196 
1000 
5980 
3240 
3814 

^2000 
3000 
2500 

13743 


64573 


10 


12 


9.9, 


See  Mdse.  acct.  p.  33,  and  directions  for  ruling,  p.  56. 

1.  What  diflference  is  there  between  the  closing  of  this  account 

and  any  other  account  of  property  ? 

2.  Supposing  it  is  required  to  know  the  gain  or  loss  upon  Flour,  I 

Cotton,  or  any  other  branch  of  your  Merchandise,  how  i 
is  it  to  bo  done  ? 


1867. 

Jan. 


Feb. 


Mar. 


Apr. 


May 
June 


By  Cash 

//   Bills  Receivable 
//   James  Carter 


Ship  Hudson 

Shipm'ttoN.Orl's 

J.  Taylor  &  Co. 

R.  Morris 

Bills  Payable 

N.Y.  Ins.  Office 

Sundries 

1st  Co.  Sales 

Sundries 

Ship't  to  Liverpool 

Sundries 


R.  Morris 

Mdse. 

Bal.p.I.B.p.3«^ 


46445. 

18128.22 


1 

300 

3000 

. 

452 

108 

600 

2 

400 

5900 

3 

2760 

600 

4 

200 

4 

500 

5 

3690 

6 

3355 

7 

3240 

8 

2500 

3000 

9 

4600 

2400 

11 

3000 

12 

5000 

840 

13 

18128 

64573 

22 


1.  There  is  no  essential  difference,  except  in  the  manner  of 

finding  the  balance  in  hand. 

2.  Open  an  account  for  the  Flour  or  whatever  branch  of  this 

account  you  desire  to  show  its  own  gain  or  loss,  and 
conduct  and  close  it  in  every  respect  like  the  Merchan- 
dise account. 


Note. — Be  particular  to  write  the  "  Balance"  closing  entries  in  red.    No  others  are  brought  down  or  forward,  and  no  others 
should  bo  written  in  this  color.— Note  6,  Stock  acct.,  p.  33. 


101 


Dr. 


CASH. 


Cr 


HOT. 

■ 

1867. 

_ 



rrrr 

ran. 

1 

To  Stock   Led.  A.  f.  2. 

1 

7300 

Jan. 

3 

By  Mdse. 

1 

1800 

3 

II  Mdse, 

300 

16 

//   B.  Payable 

1 

1300 

16 

//  J.  Carter 

660 

L8 

//    House  44  Broad'y 

2 

280 

18 

//  House  44  Broad'y 

2 

150 

20 

II   Ship  Hudson 

2100 

24 

//  B.  Receivable 

500 

30 

//                    II                             6680. 

1200 

30 

//  Sundries 

1500 

II   Bal.  carried  down 

4226 

TO 

31 

»  B.PayaMe       >S:" 

596 

70 

ToBal. 

10906 

70 

Feb. 

1 

By  Mdse. 

8 

L0906 

7"0 

4226 

I70 

85 

=r 

^'eb. 

5 

//  R.  Morris'  Sales 

3 

360 

//  R.  Morris'  Sales 

167 

78 

6 

//  B.  Receivable 

796 

iO 

5 

//          // 

5 

12 

//              // 

2000 

12 

//          // 

28 

25 

II  Sundries 

//  Profit  &  Loss 

4 

2000 
400 

//   Ship't  to  N.  Orl's 
11   J.  Taylor  &  Co. 

33 
11 

28 

//  Sundries 

17415.48 
"               'f                                10y52.78 

5 

4822 
2810 

22 
16 

18 

20 
25 

II   House  in  Broad'y 
//   Profit  &  Loss 
//   R.  Morris 
11   Bills  Payable 
//   R.  Morris'  Sales 
II   Bills  Receivable 
//   Sundries           ^^^^^'^ 

4 

201 

181 

3400 

20 

21 

2000 

4800 

y^ 

Mar. 

28 
2 

//   Bal.  carried  down 

5 

6462 

70 

17415 

48 
70 

17415 

48 

ToBal. 

6462 

By  Ship  Roscoe  my  \ 

2120 

^ 

^iar. 

1 

//  Wm.  Hay 

5 

2500 

4 

II   Sh. Roscoe &Owners 

850 

2 

//  Ship  Hudson 

1850 

//   Bills  Payable 

6 

1400 

5 

//  Mdse. 

6 

255 

12 

//   Mdse. 

180 

//  Sh.Roscoe& Owners 

1800 

16 

//   Estate  A.  Lenox 

7 

2500 

12 

II  N.  Y.  Ins.  Co. 

3690 

17 

//   Sundries 

170 

//  Estate  A.  Lenox 

7 

7500 

25 

//    1st  Co.  Sales 

4500 

17 

//  Sundries 

104 

20 

31 

//    Sundries            ^'^^ 

8 

1300 

28 
31 

//  Mdse.               «r 

11641.90 

ToBal. 

8 

500 

Apft 

1 

'/   Bal.  carried  down 
By  B.  Receivable 

8 

11641 
24661 

90 

24661 

90 
90 

90 

11641 

2000 

A.pr. 

20 

//  Sundries 

9 

2017 

70 

5 

//   Ship't  to  Liverpool 

348 

55 

22 

//              V 

10 

1520 

80 

10 

15 
20 

//   R.  Morris 

II   J.  Taylor  &  Co. 

//   Sundries 

II  1st  Co.  Ship't  to  B'n 

//    Sundries 

II   2d  Co.  Sales 

9 
10 

20 

1204 

300 

60 
133 
185 

X 

12 

22 

II   Sundries 

Forward  to  fol. 

12 

3207 
7457 

05 

Forward  to  fol. 

15180 

40 

60 

1.  The  learner's  attention  is  here  particularly  directed  to  the  operation  of  continuing  an  account  upon  a  new  page.  If  we  wera 
balancing  the  account  here,  the  expression  of  the  closing  entry  would  be, "  Balance  in  hand  carried  forward,"— not  "  car- 
ried down ;"  and  the  new  account  would  open, "  Balance  Bro't"  forward.  The  columns  should  never  be  footed  in  ink  until 
checked.  Never  forget  to  leave  a  line  to  foot  the  columns  upon.  The  same  directions  apply  to  all  other  accounts.— Note 
2,  Wood's  acct.,  p.  15. 


102 


v^ 


p  r\  A  .*« 
Of  TH£ 


Br. 


BILLS 


VNIYERSi 

Of 

Saufo 


\K 


RECEIVABLE. 


Cr. 


Jan. 

1 

TO 

18 

30 

31 

Feb. 

9 

12 

25 

28 

Mar. 

12 

17 

20 

Apr. 

1 

May 

13 

18 

June 

18 

25 

30 

To  Stock, 

Merchandise, 
J.  Carter, 
Sundries, 
Bills  Payable, 
Morris'  Sales, 
Bills  Receivable, 
Cash, 

// 
Sundries, 
Morris'  Sales, 
Estate  of  A.  Lenox, 
Sundries, 

Estate  of  A.  Lenox, 
Sundries, 

// 
2d  Co.  Sales, 
Sundries, 


42754.19 
34074.19 


To  Balance, 


3000 
3000 

600 
1515 

800 
2100 

300 
2000 
4444 
2011 
4500 
1700 

400 
1340 
2063 
7000 
3000 
2000 

980 


75 


44 


42754 


19 


8680 


See  Bills  Receivable  account,  p.  33. 

1.  Is  it  not  better  to  post  the  debit  and  credit  of  eacli  note 

on  the  same  line  opposite  each  other  ? 

2.  Does  the  manner  of  conducting  this  account  not  form  an 

exception  to  Rules  VI.  and  VII.? 

3.  "Why  is  this  deviation  from  the  rule  for  conducting  other 

property  accounts  ? 


"IHS77 

Jan. 
Feb. 


Mar. 


Apr. 


May 
June 


By  Sundries, 

//  f/ 

If  II 

II  Cash, 

//  Mdse., 

//  Cash, 

//  Wm.  Hay, 

It  Sundries, 

It  Ship't  to  Liverpool, 

//  Cash, 

//  // 

//  R.  Morris, 

//  Cash, 

//  Sundries, 

//  Cash, 

II  Sundries, 

II  II                         34074.19 

//  Balance,                f. 


44 


1000 

800 

600 
2000 
1000 
4444 

300 

500 
4500! 
2011  j 
1515175 
20001 
7000' 
17401 
2100 
20631 

500 1 
8680 


42754 


19 


1.  It  is,  where  there  are  no  endorsements ;  but  it  is  better  not 

to  occupy  the  learner's  attention  with  this  mode  of  post- 
ing it  until  he  has  learned  the  principles — See  p.  167. 

2.  It  does  so;  it  is  always  debited  and  credited  for  the /ace  of 

the  bill  only ;  not  for  what  it  costs  or  what  it  brings  in. 

3.  It  is  done  for  the  purpose  of  making  the  balance  of  the 

acct.  agree  with  the  balance  of  notes  on  hand. 


WILLIAM 


HAY. 


tsbt: 


Jan.     1  To  Stock  Ledger  A,   f.    2 


Mar. 

Apr. 
May 
June 


To  J.  Walker, 
//  Bills  Receivable, 
//  Sundries, 
II  Merch.  B'k  Stock, 


//  Balance, 


See  rorm   III.,  p.  116,  and 
MoiTis'  account,  p.  105. 


3000 


600 
300 

179? 

2500 
10813 


16012 


12 


12 


TSBTT 

Jan. 

Feb. 
Mar. 


Apr. 
June 


June 


30  By  Sundries, 


30 


By  Ship't  to  N.Orleans 
//  Cash, 

//  1st  Co.  Sales, 
II       If  If 

If  R.  Morris, 
//  Sundries, 
//         // 
//      '  // 
//  Ship  Roscoe&  Own. 

16012.12 
5199. 


By  Bal.^%  rendered, 


30001 


1500 
2500 
450 
1400 
2000 
1065 
3129 
2160 
180812 


16012  il2 


10813^2 


103 


4 

J)r 

BILIfS 

PAYABLE. 

Cl 

~1867r 

Jan. 

16 

To  Cash, 

1 

1300 

1867. 

Jan. 

1 

By  Stock, 

1 

300 

Feb. 

18 

//  Sundries, 

4 

1600 

3 

//  Mdse., 

1000 

Mar. 

4 

//  Cash, 

6 

1400 

15 

//      // 

1600 

• 

5 

//  Mdse., 

2500 

20 

//  Ship  Hudson, 

2 

8000 

Apr, 

22 
23 

II  Sundries, 
//  Cash, 

10 

8000 
601 

31 

//  Bills  Receivable, 
//  Sundries, 

800 
600 

May 

4 

//       // 

2222 

22 

Feb. 

1 

II  Mdse., 

3 

2222 

22 

8 

//       // 

11 

202 

70 

// 

//  R.  Morris'  Sales, 

2222 

22 

June 

18 

II  R.  Morris,     "^'^-^ 

13 

112 

30 

20 

II  R.  Morris, 

4 

2500 

30 

II  Balance,                f. 

13 

6927 

22 

Mar. 

4 

//  Sh.  Roscoe&own'rs 

5 

400 

/ 

Apr. 

5 

10 
20 

//  Ship't  to  Liverpool, 

//  R.  Morris, 

//  John  Taylor  &  Co. 

//  Sundries, 

//  2d  Co.  Sales, 

8 

9 

10 

161 

41 

601 

145 

3000 

45 
25 

y^ 

May 

31 

//  R.  Morris, 

12 

112 

30 

X 

June 

18 

//  Warden  &  Bell, 

13 

1160 

24865 

44 

June 

30 

17938.22 

24865 

44 

6927.22 

By  Balance, 

6927 

22 

See  Bills  Payable,  p.  34. 

1.  Is  it  not  found  convenient  to  post  the  d 

upon  the  same  Une,  as  described  in  th 
acct.? 

2.  Why  then  was  it  not  introduced  here? 

3.  How  does  this  account  close  and  re-ope 

this  way? 

ehits  and  credits 
B  Bills  Receivable 

n  when  posted  in 

1.  I  recommend  this  mode  of  posting  both  bill  accounts,  in 

all  kinds  of  business. 

2.  Because  it  is  desirable  to  avoid  distracting  the  pupil's  at- 

tention with  too  many  matters  at  once,  and  we  have  ex- 
emplified it  in  our  Bill  Accounts,  p.  167. 

3.  Precisely  like  the  Bill  Book,  p.  50. 

HOUSE  44 


BROADWAY. 


1867. 

Jan. 
Feb. 


To  Stock  Ledger  A,  fol. 
//  Cash, 


15481. 
15300. 


June  30  To  Balance, 


15000 
280 
201 


15481 


15000 


1.  What  is  this  account  debited  and  credited  for? 

2.  How  does  it  close  ? 

3.  How  is  the  first  closing  entry  of  $15000  found? 

4.  How  is  the  second  closing  entry  found  ? 

5.  What  does  this  difference  represent,  and  what  is  done 

with  it? 


1867. 

Jan. 
May 

June 


By  Cash, 

II  II  30 

//  Balance,        ^^^ 
II  Profit  &  Loss, 


150 
150 

15000 
181 


15481 


1.  It  is  debited  for  its  cost  and  credited  for  what  it  has 

brought  mo  in. — Rules  VI.  and  VII.,  p.  39. 

2.  By  Rule  II.,  p.  99. 

3.  It  is  what  we  value  the  house  at. — See  first  debit  entry. 

4.  It  is  the  difference  between  the  two  sides  after  the  first 

closing  entry  is  made. 

5.  It  is  the  loss  upon  the  property,  and  we  debit  Profit  &  Loss 

for  it. 


MERCHANTS' 


BANK  STOCK. 


1867. 

Apr. 
May 

10 
4 

To  Stock, 
11  Profit  &  Loss, 

11 

5000 
750 

1867. 

May 

1 

4 

By  Cash, 
//   Sundries, 

xo 

11 

250 
5500|    • 

5750 

57501 

1 

1.  Hov 

MSt 

his  account  kept  and  closed? 

1.  Th 

is  is 
rules 
bein 
close 

a  property  account,  and  is  condi 

as  all  other  property  accoun 

I  all  sold  on  the  4th  of  May,  the 

d  by  a  Day-Book  entry.— See  No 

ictec 
ts. 
ace 
te6, 

by  the  same 
The  property 
Dunt  was  thcB 
p.  80. 

104 


Dr. 

EGBERT 

CLondon) 

MORRIS. 

Cr. 

5 

1867. 

1867. 

Feb. 

18 

To  Sundries 

4 

4440 

Jan. 

1 

By  Stock.  Led.  A.  fol. 

2 

2000 

20 

If   B.  Payable 

2500 

Feb. 

1 

//   Mdse. 

3 

8888 

88 

Apr. 

5 

//    Sundries 

8 

2166 

25 

25 

w    Cash 

4 

1995 

10 

//         // 

9 

4980 

33 

28 

//   Sundries 

5 

4444 

44 

25 

//         // 

10 

2400 

Mar 

12 

//   Morris'  Sales 

7 

9052 

May 

31 

//         // 

12 

5691 

22 

Apr. 

20 

//   2d  Co.  Sales 

10 

4000 

//   Commission 

40 

May 

8 

//    Sundries 

11 

4444 

44 

June 

1 

•//   Sundries 

7756 

66 

18 

//  2d  Co.  Sales 

4093 

05 

12 

//        // 

13 

7218 

June 

18 

//    Sundries 

13 

5565 

28 

//        // 

14 

4000 

30 

//     Profit  &  Loss  44515  87 

14 

33 

06 

//   S.  Eoscoe&  owners 

2500 

//   Bal.                   fol. 

13 

5676 

59 

30 
30 

//   S.Koscoe.myiSl? 

5676.59 

6500 

50192 

46 

50192 

46 

June 

To  Bal.  facet.  Rend. 

5676 

59 

1.  What  does  the  debit  and  credit  side  of  this  account  show? 

2.  How  do  they  close  ? 

3.  Why  is  the  expression  "  Rendered"  annexed  to  the  Balance 

brought  down? 

1.  All  personal  accounts  are  alike,  and  are  debited  for  your 

account  against  them,  and  credited  for  their  account 
against  us.— Note  3,  p.  23. 

2.  To  or  By  Balance. 

3.  Because  a  statement  of  his  account  has  been  sent  him. — 

See  p.  114. 

WARDEN 


& 


BELL. 


1867. 

Jan. 
June 


24  To  James  Walker 
18    If    Sundries 


500 
11160 


11660 


1.  When  was  this  account  footed  and  ruled  off? 

2.  Is  it  always  necessary  to  close  an  account  every  time  it  is 

settled? 


1867. 

Jan. 
June 


By  Stock,  Led.  A.  fol.     2 
If   Mdse.  12 


500 
11160 


11660 


1.  On  June  18,  when  we  paid  him  off. 

2.  There  may  be  cases  when  it  is  not  absolutely  necessary  to 

do  so ;  but  as  the  omission  of  it  sometimes  leads  to  very 
troublesome  consequences,  our  advice  is,  always  to  make 
it  a  rule  to  do  so.— See  note  1,  Wood's  Account,  p.  15, 
and  note  p.  20. 


JAMES 


CARTER. 


1867. 

Jan. 

• 

10 
15 

16 
19 

To  Mdse. 

1 
1 

2 

19tl 
serve 

452 

108 

1867. 

Jan. 

i.it\i 
t 

16 

18 
20 

ould 
ime 

ByCasb 

1 

2 

i 

Id  a 

560 

560 

560 

To  Mdse. 
ff      If 

600 
400 

By  B.  Receivable 
If   Sundries 

;  but  it  is  better  to  close  the  o 
It  is  paid. 

600 
400 

1000 

1000 

1.  This 

I 

acc< 
)alai] 

JTint  was  closed  on  the  15th  and 
ce  Btruck  on  the  19th  not  have  l 

i;  would  the 
d  for  both? 

ccount  every 

105 


6     Dr. 


SHIP 


HUDSON, 


Cr. 


1807, 

Jan. 
June 

June 


1867 

Mar. 
May 

June 


30 


To  Sundries 
//   Cash  ''"''• 

It   Profit  &  Loss    fol. 


To  iJaknce 


16000 
1200 
4150 

2T35U 


IWOO 


1 .  How  is  tins  accormt  kept,  and  how  are  the  first  and  second 
closing  entries  found  ? 


Bj  Cash 


//    Balance 


21350.      f 
17200. 


1850 
3500 

16000 
ET35U 


1.  This  account  is  in  every  respect  like  "  House  in  Broadway," 
and  closes  by  the  same  rule. — See  that  account,  p.  104. 


PROFIT 


& 


LOSS. 


1S67. 

1867. 

— 

Jan. 

20 

To  J.  Carter 

2 

200 

Jan. 

30 

By  Sundries 

2 

15 

75 

31 

//   B.  Payable 

3 

30 

Feb. 

25 

//   Cash 

4 

400 

Feb. 

6 

//   B.  Receivable 

3 

60 

28 

//       // 

5 

377 

78 

12 

//               // 

3 

300 

It   Sundries 

376 

72 

18 

If   Cash 

4 

181 

Mar. 

5 

//    1st  Co.  Sales 

6 

358 

25 

//      It 

355 

56 

12 

//    Shipm't  to  N.  Orl's 

1507 

Apr. 

22 

It   Sundries 

10 

7 

05 

//   Morris'  Sales 

7 

18 

May 

31 

If  B.  Eeceivable 

12 

400 

17 

//    Sundries 

4 

20 

June 

1 

//    Sundries 

13 

111 

Apr. 

1 

//   Bills  Eeceivable 

8 

63 

18 

//         // 

160 

20 

//   Cash 

9 

6 

to 

28 

//  S.Koscoe&  owners 

14 

320 
200 

22 
25 

//       It 

It   R.  Morris 

10 

5 
400 

05 

30 

rr   Sundries         ^"-^ 

1132 

29 

30 

//   3d  Co.  Adventure 

500 

//   Amount  to  date 

80 

May 

4 

//   Mer'ts  Bank  Stock 

11 

750 

3373 

56 

wHo.inBr'dway3^^-«°f. 

4 

181 

8 

//   Sundries 

355 
140 

//   Stock  for  net  gain  f. 

1 

28044 

50 

13 

//         // 

18 

//   2d  Co.  Sales 

106 

Db 

/ 

It   Cash 

12 

18 

90 

/ 

25 

It       It 

70 

/ 

June 

1 
25 

30 

It   Sundries 

//   Bills  Receivable 

It   1st  Co.  Sales 

//   Sundries         ^<^«" 

//   Amount  to  date 
//   Mdse.                 fol. 
II   Ship  Hudson       // 
It   Commiss'n  Slo " 

28044  50 

13 
14 

1 
6 

8 

1176 
180 
471 

3669 

iioyw 

13743 
4150 
2736 

32 

25 
13 

12 

77 

.  35. 

B1599 

30 

• 

Bala 

^599 

1 

^0 

See  Profit  &  Loss  Account,  p 

' 

1.  These  were  the  additions  for  the  Trial 

nee,  and 

are 

l.Whyist: 

lis  account  footed  on  both  sides  , 

Tune 

so? 

placed  there  to  save  the  trouble  of  adc 

ing  up  the  whole 

2.  What  ar 
nexec 

3  these  transfers,  and  why  is  th 
1  to  them  ? 

e  no 

te  "  fol."  an- 

column  again  after  the  transfers  are  made, 
2.  They  are  the  gains  and  losses  found  by  closing  the  different 

3.  What  is 

the  object  for  bringing  these 

rans 

fers  to  this 

accounts  named.  "  Folio"  distinguishes  the  Ledger  pages 

accou 

nt? 

from  those  of  the  Journal,  which  are  placed  together  in 

4.  As  a  ger 

eral  rule,  no  entry  passes  from 

Bal 

mce  to  this 

the  same  column. 

Accoi 

mt:  neither  has  it  any  balance 

J  to 

bring  down 

3.  To  complete  our  account  of  gains  and  losses,  and  thereby 

into  r 

lew  account :  is  there  no  except! 

on  t( 

)  this  rule  ? 

ascertain  our  net  increase  or  decrease  of  capital,  shown 
by  the  small  marginal  figures.— Note  4,  Mdse.  p.  33. 
4.  There  are  but  few  exceptions,  save   those   created  by 
partnership  settlements.— Part  II.,  p.  177. 

106 


Dr. 


JAMES 


WALKER. 


Cr. 


Mar. 
Apr. 
May 


5  To  Mdse., 
--iO    //  3d  Co.  Adventure, 
/  Sundries, 


6 

600 

1867. 

Jan. 

24 

ByW 

10 

2500 

Mar. 

2 

//  Su 

11 

600 

— 

Apr. 

20 

//  3d 

3700 

3d  Co.  Adventure, 


500 
1200 
2000 


3700 


R.  MORRIS' 


SALES. 


1867. 

Feb. 

1 

To  Sundries, 

5 

If  Cash, 

12 

//       ;/ 

20 

//       If 

Mar. 

12 

If  Sundries, 

Repeat  Rule  X.,  p.  41,  and  see  Note  3,  p.  68. 

1.  How  is  Morris'  net  proceeds  found  when  all  the  goods  are 

sold? 

2.  How  are  consignment  accounts  closed  and  reopened  when 

the  Ledger  is  closed  with  part  of  the  property  on 
hand,  and  no  sales  rendered  ? 
\  How  if  you  render  account  sales  of  the  part  sold? 


1867. 

Feb. 


Mar. 


By  Cash, 

//  Bills  Receivable, 
//  R.  Morris, 
!f  Bills  Payable, 
//  Bills  Receivable, 
//  Mdse.,  '^ 


3 

360 

2100 

4 

840 

1080 

6 

4500 

3240 

12120 

1.  There  was  $9676  Balance  at  the  credit  of  the  account 

when  the  sales  were  completed.  Our  commission  is 
S606,  storage  and  advertising  $18.  After  deducting 
these  charges  the  remainder  belongs  to  Morris.  It  is 
therefore  evident  that  this  balance  of  $9676  belongs  to 
these  three  accounts. — See  Journal  entry  March  12,  p. 
83,  and  Account  Sales,  p.  117. 

2.  They  close  and  re-open  by  Double  Balance. — See  Commis- 

sion Sales  acct.,  Part  II.,  p.  169. 

3.  The  acct.  closes  as  above,  and  does  not  re-open  until  the 

sale  of  the  goods  on  hand  recommences. — Note  4,  p.  68. 


SHIPMENT  TO 


(J.  Taylor  &  Co.) 


NEW  ORLEANS. 


1867. 

Feb. 
Mar. 


To  Sundries, 
//  Profit  &  Loss, 


4293 
1507 


5800 


Repeat  Rule  XI.,  p.  41,  and  Rule  II.,  p.  99. 
"What  kind  of  an  account  is  this,  and  why  was  it  closed  on 
the  12th  March? 


1867. 

Mar. 


12 


By  Mdse., 


5800 


5800 


1.  It  is  a  property  account,  and  was  closed  on  the  12th  March 
because  full  returns  were  then  received. — Note  5,  p.  80. 


SHIPMENT  TO 


(Columbia) 


LIVERPOOL. 


15677 

Apr. 
June 


To  Sundries, 


To  Bal.  bro't  down, 


8010 


8010 


"When  the  accounts  are  to  continue  in  the  same  Ledger, 
would  it  not  have  answered  as  well  to  have  made  the 
entry  in  the  Balance  account,  without  closing  and  re- 
opening this  acct.  ? 


June 


30 


By  Balance, 


1.  It  would ;  but  I  wish  to  show  the  universal  application  of 
my  rule  for  closing  all  property  accounts  belonging  to 
ourselves.  This  example  differs  from  any  previous  one, 
as  the  property  has  produced  no  returns. — Rule  II., 
p.  99. 


107 


Dr. 


JOHN 


(New  Orleans.)       TAYLOR  &  CO.     Cr. 


1867. 

Feb. 
Apr. 


June 


30 


To  Sundries, 


7438.33 
5693.05 


To  Bal.f%  rendered, 


Seo  Form  II.,  p.  116,  Morm'  acct,  p.  105. 


1867. 

3 

644 

Apr. 

15 

8 

1210 

9 

604 

May 

18 

9 

5. 

4980 

33 
33 

June 

30 

7438 

1745 

28 

By2dCo.Sliipm'tNew 
Orleans  to  London, 
w  2d  Co.  Sales,    5693.05 


//  Balance, 


1600 
4093 
1745 


05 

28' 


T458  35 


COMMISSION 


ACCOUNT. 


1867. 

1867. 

i 

June 

30 

To  Profit  &  Loss,   fol. 

6 

2736 

77 

Feb. 
Mar. 
Apr. 

12 
25 

5 
12 

5 
10 

By  J.  Taylor  &  Co., 
//  Cash, 

//  1st  Co.  Sales, 
//  R.  Morris'  Sales, 
//  R.  Morris, 
//  J.  Taylor  &  Co., 
//             // 
u  Sundries, 

3 

4 
6 

7 
8 

9 

33 
5 

72 

606 

105 

6 

3 

396 

/ 

May 

18 
31 

11  2d  Co.  Sales, 
//  R.  Morris, 
//           // 

11 
12 

396 

278 
40 

85 
92 

/ 

June 

1 

//  Sundries, 

13 

162 

/ 

12 

//  R.  Morris, 

181 

/ 

25 

//  1st  Co.  Sales, 

14 

357 

50 

/ 

28 

//  Estate  of  A.  Lenox, 
//  Sli.Roscoe&  owners 

2736.77 

40 
217 

2736 

50 

2736 

77 

77 

1.  Tov 

fhat 

• 
class  of  accounts  does  this  belon 

s? 

1.  It  I 

sal 

)ranch  of  the  Profit  &  Loss  acct. 

"~ 

2.  Why  not  carry  the  entries  to  Profit  &  Loss  at  once? 

2.  We  could  not  then  know  what  we  made  by  this  branch  of 

3.  How  is  this  account  kept? 

our  business. — See  Note  4,  p.  24, 

4.  How  is  it  closed? 

3.  By  debiting  it  for  returned  commissions,  and  for  what  we 

5.  Are  there  not  sometimes  entries  made  at  this  account  that  i 

1             may  lose  by  guaranteeing,  and  crediting  it  for  all  we 

have  to  be  brought  down  into  new  account? 

1              earn  by  agencies. 

4.  Always  to  Profit  &  Loss— never  To  Balance. 

5.  Very  seldom,  except  in  partnership  settlements :  these  are 

< 

jxpi 

lined  in  the  next  part,  p.  177. 

NEW  YORK 


INSURANCE  OFFICE. 


18«7. 

Feb. 


28 


To  Mdse., 


3690 


I.  To  which  class  of  accounts  does  this  belong  ? 


lo67. 

Mar. 


12 


By  Cash, 


3690 


1.  Although  it  is  not  with  a  person,  yet  it  is  a  personal  acct 
and  is  kept  in  every  respect  similar. 


108 


Dr. 


FIRST  COMPANY  SALES. 


Ci. 


1867. 

Mar. 

1 

2 

5 

20 

25 

28 

May 

4 

June 

25 

To  Wm.  Hay, 
u  J.  Walker, 
//  Sundries, 


ToMase., 
//  Cash, 
//  Mdse., 

/'  Merch.  B'k  Stock, 
//  Sundries,         i,,^ 


450 

600 

1830 


2880 


3240 
4500 
2000 
2500 
7800 


20040 


See  Notes  5  and  6,  p.  42,  and  Rule  XII.,  p.  43. 

1.  Why  was  this  account  closed  on  the  5th  of  March? 

2.  How  and  where  does  this  account  close  when  all  is  sold? 

3.  How  if  there  be  none  sold,  or  if  the  sales  are  not  more  than 

enough  to  cover  the  charges  you  have  advanced? 

4.  How  if  there  be  more  than  enough  sold  to  cover  charges? 


5.  Why  is  this  distinction  made  after  the  charges  are  cov- 

ered? 

6.  What  is  done  with  the  balance  entry  ? 


Mar. 


Apr. 
June 


By  Sh.  Roscoe,  myi, 

1050. 


By  Sundries, 
//  1st  Ship't  to  Bost'n, 
//  Sundries, 
If  Mdse., 


20040. 
12240. 


2880 


2880 


9500 
3240 
4800 
2500 


20040 


1.  Because  we  rendered  account  sales  and  settled  with  our 

partner  at  that  date. — Note  5,  p.  80. 

2.  It  closes  To  Sundries,  by  a  Day  Book  entry. — See  Note  3, 

p.  80,  and  Note  2,  p.  96. 

3.  It  closes  By  Balance,  the  charges  being  payable  out  of  the 

first  sales. 

4.  Credit  the  account  first  By  Balance  for  our  proportion  of 

the  part  unsold,  then  close  To  Sundries  as  if  all  were 
sold. 

5.  The  amount  sold  afterwards  is  partly  ours  and  partly  our 

associate's. 

6.  It  is  brought  down  or  transferred  like  all  other  balance 

entries. — See  Part  II.,  p.  177. 


SHIP 


(Myi) 


ROSCOE. 


1867. 

Mar. 
June  Bo 


To  Sundries, 
It  Profit  &  Loss, 


1.  To  what  class  of  accounts  does  this  belong? 


5000 
3308  tig. 

8308  13 


1867. 

June 


By  Sh.  Koscoe  &  own'rs 
1/  B.  Morris, 


1808  [13 
6500 


8308  [13 


1.  It  is  a  property  account,  and  is  conducted  and  closed  by 
the  same  rules  as  all  other  property  accounts. 


SHIP  ROSCOE 


AND  OWNERS. 


1867. 

Mar 

June 


To  Sundries, 


1250 
7450 


8700 


1.  What  kind  of  an  account  is  this? 

2.  How  is  it  closed? 


3.  Could  this  and  the  last  account  not  be  kept  under  one 

head  upon  the  same  principle  as  1st  Company  Sales  ? 

4.  Why? 


1867. 

Mar. 

May 
June  ^8 


By  Cash, 
//      I/' 
If  Sundries, 


1 

61 

1800 

to 

4200 

14 

2700 

8700 

1.  It  is  conducted  under  the  rules  for  personal  accounts. 

2.  If  the  debit  side  be  the  largest,  close  By  Balance ;  but  if 

the  credits  be  the  largest,  close  To  Sundries,  as  on  the 
28th  of  June.— See  Part  II.,  p.  177. 

3.  Not  without  the  risk  of  much  confusion. 

4.  Because  the  credits  of  the  former  account  are  private  pro- 

perty; but  the  credits  of  the  latter  are  joint  property, 
and  could  not  therefore  be  placed  in  one  account. 


109 


10 


Dr. 


ESTATE 


LENOX. 


Cr. 


1867. 

Mar. 

May 
June 


To  Cash, 
n 
It 


It 


Bills  Receivable, 

Commission,    ssdo, 

House  49  Cedar  St., 
Balance,  i. 


2500 
10 

1340 
40 


29 


33040 


1.  What  is  the  object  of  this  account,  and  how  is  it  kept? 


2.  IIow  does  it  close  and  reopen? 

3.  Suppose  the  time  has  arrived  when  we  have  to  pay  over 

the  above  balance,  $29010,  to  the  two  legatees,  to  each 
one  half,  and  R.  Lenox  takes  the  house  in  Cedar  Street 
at  its  valuation  as  part  payment,  and  C.  Lenox  the 
bank  stock,  also  at  our  valuation,  as  part  payment  of 
her  legacy ;  and  we  pay  over  each  the  remaining  baU 
ance  due  them  in  cash,  how  do  we  close  all  these  ac- 
counts? 


1867. 

Mar. 
June 


By  Sundries, 
//  B.  Receivable,  32540. 
//  City  Bank  Stock 


29010. 


By  Balance, 


31200 

1340 

500 


33040 


29010 


1.  It  is  to  show  the  details  of  our  administration  of  the  Lenox 

Estate,  and  is  opened  and  conducted  like  a  personal  ac- 
count. 

2.  After  it  has  received  its  transfers  from  its  branches— see 

the  two  next  accounts — then  close  as  a  personal  acct. 
3. .  By  a  Day  Book  entry,  thus — 


Lexox  Estate  To  Sundkies  to  close  Acct.,  $29010. 
To  House  49  Cedar  St.,  conveyed  to  R.  Lenox  for 
"  R.  Lenox,  amount  already  paid  per  acct. 
"   Cash  paid  R.  Lenox  for  balance  of  his  Legacy 
"  City  Bank  Stock,  conveyed  to  C.  Lenox  for 
"   Charlotte  Lenox,  for  amount  paid  per  acct. 
"   Cash,  now  paid  balance  of  her  Legacy  .    . 


12000 

800 

1705 

10000 

500 

4005 


HOUSE  49 


(Lenox  Estate) 


CEDAR  STREET. 


1867. 

Mar. 
June 


To  Estate  of  A.  Lenox, 
//  Cash, 


12440. 
12300. 


14 


12000 
160 

280 


12440 


Jane  30  To  Balance,  12000 

1.  What  is  this  account  debited  and  credited  for? 

2.  How  does  it  close  ? 

3.  Why  not  close  To  or  By  Profit  &  Loss  ? 


1867. 

June  3 ( 


aiance,        12300.   i. 
Estate  of  A.  Lenox, 


12^88 

140 


12440 


1.  Debit  first  for  its  value,  and  for  what  it  costs  afterwards; 

credit  for  what  it  brings  in  by  sale  or  rent. 

2.  If  unsold,  credit  first  By  Balance  for  the  value ;  then  dose 

To  or  By  Lenox  Estate. 

3.  The  gain  or  loss  is  not  ours ;  it  belongs  to  the  estate. 


CITY 


(Lenox  Estate) 


BANK  STOCK. 


1867. 

Mar. 
June 

12 
30 

30 

To  Estate  of  A.  Lenox, 
//       //              //         f . 

7 
10 

10000 
500 

1867. 

June 

si 

If  Balance,               f. 

1§ 

1« 

10500 

10500 

June 

To  Balance, 

10000 

CHARLOTTE      (Legatee  of  Lenox  Estate)         LENOX. 


1867.  I 

Mar.  131 


To  Cash, 


500 


You  may,  if  you  choose,  close  this  and  the  following  account  By  Balance,  like  "  Shipment  to  Liverpool,"  p.  107;  but  I  have 
shown  at  Ilartwell's  Account,  p.  112,  that  there  is  no  necessity  for  it. 


ROBERT 


(Legatee  of  Lenox  Estate) 


LENOX. 


1867. 

Mar. 


31 


To  Cash, 


8 

800 

110 


Dr. 

2d  Co.  Shipment  to 

(R.  Morris) 

London. 

Cr. 

11 

ISffT. 

Apr. 
June 

10 

1 

^ote 
ist 

To  Sundries, 
//  Profit  &  Loss, 

9 
12 

4980 
649 

34 
66 

i86r. 
June  1 

1.  It  is  ke] 
ment 

By  R.  Morris, 

12 

iny< 

5630 
5630 

5630 

Seel 
1.  How 

2,  p.  86,  and  Note  4,  p.  92. 
liis  account  kept  ? 

3t  and  closed  in  all  respects  like 
or  property  account. 

)ther  cons 

igDr- 

1st  Co.  Shipment  to     rc.  Hartwell) 


Boston. 


1867. 

Apr. 
June 


To  Sundries, 


3800 
3180 


6480 


See  Note  3,  p.  86. 

1.  What  is  this  account  debited  and  credited  for? 

2.  Why  not  credit  for  our  own  share  of  the  returns  only  as  in 

the  last  account  ? 


1867. 

June 


By  C.  Hartwell, 


12 

6480 

6480 

1 

1.  It  is  debited  for  our  proportion  of  the  first  cost  and  tho 

whole  charges,  and  credited  for  the  whole  returns. 

2.  Because  Hartwell  accounts  to  us  here  for  Hay's  share  as 

■well  as  ours.    In  the  last  account  Morris  accounted  to 
each  partner  for  his  share. 


1st  Co.  Shipment  to     (Baring  &  Co.) 


Liverpool. 


1867. 

Apr. 
June 


To  Sundries, 
//  Profit  &  Loss, 


1799 
361 


2160 


See  Note  3,  p.  96, 
1.  This  account,  like  the  last,  was  debited  for  our  share  of  the 
first  investment,  why  not  also  credit  it  for  the  whole 
returns  ? 


1867. 

June 


28 


By  Sundries, 


14 


2160 


2160 


1.  In  the  last  account  we  had  charges  to  deduct  from  the  rs- 
turns ;  in  this  we  have  none,  we  therefore  carry  Hay'i 
half  net  proceeds  at  once  to  his  credit. 


2d  Co.  Shipment  from     (R.  Morris)    New  Orleans  to  London. 


1867. 

Apr. 
June 


To  J.  Taylor  &  Co., 
//  Profit  &  Loss, 


1600 
526 


2126 


66 


66 


See  Note  5,  p.  86. 
1.  What  is  this  account  debited  and  credited  for  ? 


1867. 

June 


ByR.  Morris, 


12 


2126 


2126 


66 


66 


1.  It  is  debited,  like  "2d  Co.  Shipment  to  London,"  for  our 
share  of  the  first  cost,  and  credited  for  our  proportion 
of  the  returns. 


3d  Company 

(J.  Walker) 

Adventure. 

1S67. 

Apr. 

20 
30 

13 

To  J.  Walker, 
ff   Profit  &  Loss, 

9 
10 

11 

2000 
500 

1867. 

Apr. 
June 

1.  To  ( 
a 
P 

30 
18 

iisti 

re  tl 

42. 

By  J.  Walker, 

10 
13 

ants 
Not 

2500 

2500 

2500 

May 

To  Mdse., 

1500 

By  Sundries, 

■ 

nguish  it  from  those  joint  acco 
10  managers  of  the  sales. — See 

1500 

1.  WhY 

isti 

iis  account  called  an  abventure 

inO 

3.? 

of  which  W8 
es  9  and  10> 

111 


13      Dr.    2d  COMPANY 


SALES. 


Cr. 


1867. 

Apr. 
May 


To  Sundries, 


See  Note  4,  p.  90. 
1.  How  is  this  account  conducted? 


7185 
8689 


15874 


1867. 

May 


By  Sundries, 


15874. 
7185. 


11 


8500 
7374 


15874 


1.  In  all  respects  like  1st  Co.  Sales,  p.  109.  We  account  to 
each  partner  for  his  share  of  the  net  proceeds.  Sp*» 
form  of  account,  p.  116. 


CASH 

ACCOUNT. 

1867. 

Bro't  forward,    fol. 

2 

15180 

40 

1867. 

Bro't  forward,    fol. 

2 

7457 

60 

30 
1 

_..,--^''  8058.60 

1 
10' 

Apr. 

May 

23 

30 

4 

8 

By  Bills  Payable,  8058.60 
//  Bal.  carried  down, 

10 

10 
11 

601 

7121 

^^.^--'''''^                        7121.30 

SO 

15180 

40 

15180 

40 

Apr. 

May 

To  Bal.  bro't  down, 
//  Sundries, 

7121 
1200 

80 

By  Bills  Payable, 
//          II 

2222 

202 

22 
70 

4 

It  Merh.  Bank  Stock, 

11 

7700 
500 

31 

II 

II  R.  Morris,       2724.92 
//  Bal.  carried  down. 

12 

300 

28785 

78 

8 

//  Sundries, 

4200 

y^ 

13 

//  Merchandise, 
//  Sundries, 

1500 
1640 

y^ 

18 

//  2d  Co.  Sales, 
//  Profit  &  Loss, 

12 

560 

18 

90 

y^ 

2t 
31 

If  Sundries,       ^]^^, 

28785.78 

JTOTO 
31510 

ro 

June 

12 

y^ 

13 

31510 

ro 

To  Bal.  bro't  down, 

28785 

78 

ByR.  Morris, 

7200 

June 

12 

18 

//  Bills  Receivable, 
//  Sundries, 

13 

2100 
563 

18 

//  Warden  &  Bell, 
//  Sundries, 

10000 
1660 

,/R.  Morris,     SK^ 

5452 

70 

25 

II  Bills  Receivable, 

800 

28 

//  1st  Co.  Sales, 

//  House  49  Cedar  St. 

14 

6971 

280 

25 

30 

^^^ 

30 

It 

II    Profit  &  Loss,  28010.48 

//  Balance,                 f. 

13 

1099 

8891 

23 

56901 

i8 

36901 

i8 

June 

To  Balance 

8891 

! 

See  Cash  Account,  p.  34,  and  Note  6,  p.  57 
L  Why  18  this  account  balanced  every  mont 

[if 

1.  Because  it  must  always  conform  to  the  Cash  Book,  and  it 
is  easier  to  make  it  do  so  by  frequently  comparing  them. 

(Boston) 


HARTWELL. 


1867. 

June 


TolstCo.Ship't  1^ 
to  Boston,  28C3.75 


12 


6480 


1.  Why  is  this  account  not  closed  like  all  the  rest,  and  what 

is  done  witli  the  balance? 

2.  Whould  there  be  any  irregularity  in  closing  it? 


,  1867. 

June  ^8 


By  Sh.Roscoe  &  owners 


k 


3616  25 


1.  We  find  the  balance  by  the  small  pencil  figures  in  the  mar- 

gin, and  transfer  it  as  usual  to  the  balance  account;  but 
there  is  no  occasion  for  closing  a  person's  account  until 
you  have  a  settlement  with  him,  or  wish  to  transfer  his 
account  to  New  Books. 

2.  None;  the  pupil  may  close  it  if  he  chooses.— See  Note  8, 

p.  113. 


112 


Dr. 


BALANCE  ACCOUNT, 


Cr.     13 


1867. 

June 


30 


1  1867. 

To  Mdse.              fol. 

1 

18128 

22 

June 

30 

By  Wm.  Hay        fol. 

3 

10813  12 

//   Bills  Receivable 

3 

8680 

//    Bills  Payable 

4 

6927  22 

//    House  in  Br' d way 

4 

15000 

tt   Estate  of  A.Lenox 

10 

29010 

//    11.  Morris 

5 

5676 

59 

n    Stock  for  n/c 

1 

61544 

50 

//    Ship  Hudson 

6 

16000 

46750.34 

//    Ship'ttoLiverpool 

7 

8010 

/ 

//   John  Taylor  &  Co. 

81 

:     1745 

28 

/ 

//   House  49  Cedar  St. 

10! 

12000 

/ 

//   City  Bank  Stock 

10000 

/ 

//    Charlotte  Lenox 

1 

i       500 

/ 

//   Robert  Lenox 

1       800 

/ 

1/   Cash 

12 

8891 

/ 

//   C.  Hartwell  108294.8* 

46T0O  ol 

2863 

75 

/ 

61544.50 

|108294 

1 

84 

1 

' 

108294 

84 

See  Notes  to  Balance  Account,  page  17  and  35. 
The  teacher  will  now  apply  the  examination  on  page  36  to  this  Ledger. 

1.  Remarks. — Referring  to  our  previous  instruction  in  closing  and  re-opening  accounts — 
Notes  5  and  6,  p.  9 — 1  to  7,  p.  18 — 4,  p.  32 — 6,  Stock  acct.,  p.  83,  and  7,  Mdse.  acct.,  p. 
33  :  we  may  repeat  that  re-opening  a  Ledger  means,  making  a  new  entry  of  all  the 
EFFECTS  and  LIABILITIES,  in  the  heads  of  the  new  accounts :  and  the  new  accounts  re- 
commence immediately  under  the  closing  lines  of  the  old  ones — Note  6,  p.  56 — or,  if  there 
be  no  space  there,  forward  under  a  new  head.* 

2.  We  have  closed  this  Ledger,  as  we  first  closed  the  introductory  one,  under  the  supposi- 
tion that  the  accounts  are  to  continue  in  the  same  book.  All  those  accounts  that  have  closed 
into  Balance,  are  therefore  re-opened  by  bringing  the  balance  (entered  in  red  in  the  old  ac- 
count) down  into  the  heads  of  the  new  accounts  in  black.  If  we  had  closed  with  the  view 
of  transferring  the  balance  to  a  new  Ledger,  then  this  one  must  remain  closed,  as  you  per- 
ceive at  the  second  closing  of  the  introductory  Ledger. 

3.  We  may  observe  here,  that  though  we  cannot  well  avoid  doing  so  in  teaching,  in  making 
up  the  Balance  Account  in  business,  it  is  unnecessary  to  close  any  personal  accounts  but 
those  with  whom  you  have  had  settlements;  all  that  is  necessary,  is  to  find  their  correct 
balances  in  pencil  in  the  margin — see  Hartwell's  account  last  page — and  transfer  them,* as 
if  the  accounts  were  closed,  to  the  Balance  Account ;  and  after  all  is  found  correct,  go  over 
all  those  accounts  requiring,  addition,  and  in  place  of  closing  them,  only  foot  them,  noting 
the  footing  on  each  side  "  amt.  to  date,'^  as  we  have  done  with  our  Profit  &  Loss  account 
before  the  transfers  were  made — see  p.  106.  Leave  all  the  personal  accounts  open  in  this 
manner,  to  receive  any  new  entries  that  may  occur  until  you  settle  with  them ;  then  they 
must  always  be  balanced — Note  1.  Carter's  acct.,  p.  105.  To  exemplify  this  matter  fully,  I 
have  left  open  the  two  Lenox's  and  Hartwell's  accounts — p.  110  and  112;  but  I  have  found 
it  answer  the  purposes  of  instruction  better  to  direct  the  student,  for  the  first  time,  to  close 
all  the  accounts  without  distinction.  This  is  indeed  the  readiest  way  to  explain  what  we 
are  referring  to. 

4.  Some  authors  pass  all  their  closing  entries  into  the  Journal,  and  post  them  from  thence 
into  the  Ledger.    In  business,  this  must  incur  additional  labor  without  any  apparent  advantage. 

5.  Before  proceeding  with  the  general  balance,  the  proof  or  trial  sheet  must  always  be 
first  taken  ofi",  in  business  practice.  I  always  take  my  trial  as  follows :  transfer  all  the  balances' 
f/om  the  pencil  figures  in  the  margin  of  each  account,  to  their  respective  places  in  the  Profit 
&-  Loss  and  Balance  accounts ;  leaving  all  the  accounts  open  for  the  present.  Forward 
the  footings  of  the  Balance  account  only,  in  pencil.  Then  pencil  the  difference  of  Profit  h 
Loss  into  Stock,  and  Stock  in  the  same  manner  into  Balance,  which  must  then  be  even,  if 
all  be  correct :  if  not,  the  errors  have  to  be  sought  and  corrected  in  the  usual  manner.  In 
taking  a  trial  by  this  method  in  any  extensive  business,  much  labor  is  saved;  but  it  requires 
great  care  and  accuracy  in  every  step  of  the  process. 

*  As  with  our  merchandise  account,  page  101,  which  is  left  closed  for  the  student  to  re-open  upon  a  new  page. 

H  113 

Of  THC 


SET  II.— DUFF'S  BOOK-KEEPING. 


Dr. 


E.  Morris,  Esq.,  in  Acct.  Current  and 


1 

— .^»: 

Datk. 

1867. 

Feb.:  li 

Fo 

2( 

1/ 

Apr. 

f 

II 

1( 

II 

2i 

II 

May 

3: 

II 

Jun^    ] 


Items. 


For  amt.  paid  your  Bill  at  sight  favor  R,  Banks 
accept'g  your  Bill  @  10  days,  favor  of  R.  Bank^ 
Invoice  of  Merchandise  per  "  Cherub'^ 
your  I  Invoice  of  joint  Ship't  "^  "  Cambria'' 
amt.  collected  from  Capt.  Bowline 
Invoice  of  Shipment  to  you  "^  ''  Columbia" 
Com'n  forwarding  80  packages  from  Hart- 
well  &  Thorndike,  of  Boston 
My  J  your  Acct.  Sales  joint  Shipment  from 

New  Orleans  .... 

My  i-  your  Acct.  Sales  joint  Shipment  '^ 

<^  Cambria" 

Banks'  Bill  on  Gibbs,  Son  &  Bright 
Baring  &  Co.'s  Remittance  on  my  acct. 
Freight  collected  by  you  for  ship  Roscoe 
n.  proceeds  my  \  Ship  Roscoe 
Bal.  of  Int.  Acct.  at  cr.  in  Acct.  Current  Si' 


Balance  due  P.  Puff  this  day 


Errors  Excepted,  \ 

New  York,  June  30th,  1867.  J 


Principal. 


When 
Due. 


4440 
2500 
2166  2^ 
498d  33 
240C 
569]]  2% 

40 
2126  6(1 

5680 

721^ 
400d 
2500 
6500 


50192  46 


1867. 

I  Feb.:  n 
MarJ 
May 


5670  5c 


P.  Puff. 


June 

12 

i    .18 

May 

^9 

!  1.20 

May 

2d 

l.K 

Aug  30 

2 

$151.8! 

Inte- 

RE8T.- 


9-;^  68 
4';^  92 
1^86 
6q40 
40 
28  46 


58 
80 


2165 
33  83 
16  67 

65 

3^06 

487|91 


1.  All  well-managed  mercantile  houses  render  statements  of  accounts  to  all  their  custom- 
ers and  correspondents,  and  settle  and  close  their  accounts  every  time  they  make  out  their 
balance  sheet.  The  above,  and  the  two  next  forms,  are  illustrations  :  this  one  embraces  all 
transactions  between  us  and  Morris  since  our  last  settlement — from  the  time  that  we  last 
balanced  our  books,  down  to  the  time  of  closing  them — 30th  June. 

2.  There  are  various  ways  of  stating  interest  accounts,  but  we  have  seen  none  that  presents 
all  the  particulars  with  so  much  clearness  and  simplicity,  and  in  so  little  space,  as  this  form. 

3.  The  heading  of  the  columns  explains  sufficiently  the  use  of  each  of  them.  The  state- 
ment is  drawn  from*  Morris'  account  in  the  Ledger,  referring  from  there  by  the  dates  to  the 
Day  Book  for  particulars,  when  due,  &c.  The  dates,  items,  principal,  and  when  due  col- 
umns, are  filled  up  on  both  sides  first.  Then  compute  the  time  of  each  entry  from  the  date 
in  the  when  due  column  to  the  time  of  settlement — 30th  June,  allowing  three  days'  grace 
only  where  notes  or  acceptances  are  given  or  received. — See  notes  1  to  5,  page  45.  Extend 
this  time  into  the  time  column,  and  then  compute  and  extend  the  interest  into  its  column. 
Those  entries  which  we  do  not  know  the  day  upon  which  they  fall  due — such  as  that  on  May 
8th,  Cr.  side — are  left  blank  in  the  interest  column,  and  a  Pay  Book  entry  will  be  made  to 
adjust  the  matter  as  soon  as  we  learn  the  particulars. 

4.  Observe,  the  date  in  the  when  due  column,  and  the  figures  in  the  columns  to  the 
right  of  it,  in  the  first  entry  on  the  30th  June,  Pr.  side,  are  to  be  written  in  red,  because 
this  $65  interest  belongs  to  Morris,  and  is  not  therefore  added  in  our  interest  column,  but, 
as  you  perceive,  is  carried  over  to  Morris'  interest  column.  By  the  terms  of  sale  which  he 
has  effected  of  our  \  Ship  Roscoe,  the  money  is  not  due  until  the  30th  August. — See  Pay 
Book,  June  30,  p.  96.     This  account  is  made  out,  and  interest  upon  every  transaction  so 


114 


MERCANTILE   FORMS. 


See  R.  Morris'  Acct.,  page  105,  and  Form  XX.,  p.  120. 
Interest  Acct.  to  30tli  June,  1867,  with  P.  Duff.'^- 


Cr. 


Date. 

Items. 

PRINCIPAI,. 

When 
Due. 

Time. 

INTB- 

KEST. 

1867. 

1866. 

Jan. 

1 

For  Bal.  due  you  '^  acct.  rendered 

2000 

Dec. 

31 

6. 

60 

Feb 

1 

//   your  invoice  goods  "^  ^'  Herald" 

8888 

88 

1867. 

Apr. 

10 

2.20 

118 

52 

25 

//   Proceeds  Ryan  &  Co.'s  Bill  on  Barclay 

1995 

Feb. 

25 

4.5 

41 

56 

28 

If   my  dft.  to  Warden  &  Co.,  due  "^  your  Advice 

UU 

44 

May 

30 

1. 

22 

22 

Mar. 

12 

//   n.  proceeds  my  Acct.  Sales  your  goods'^  Herald 

9052 

2 

1.28 

87 

50 

Apr. 

20 

//   my  i  your  joint  Invoice  '^  "  Vixen" 

4000 

Apr. 

10 

2.20 

53 

33 

May 

8 

//   my  dft.  favor  of  Walker 

4444 

44 

18 

//   your  i  my  Acct.  Sales  ^  "  Vixen" 

4093 

05 

May 

18 

1.12 

28 

65 

June 

18 
30 

//   Ins.  recovered  upon   Ship't  "^  '^  Columbia" 

(/   Interest  in  Red  at  Dr.  side 

"   Balance  of  Interest  Acct.                         ^^^-^"^ 

1  5565 
33 

06 

June 

18 

.12 

487.91 
454.85 

11 

65 

13 

ti   Balance  to  debit  in  new  acct. 

5676 

59 

33.06 

50192 

46 

487 

91 



adjusted,  that  the  balance  will  fall  due  in  cash  on  the  30th  day  of  June.  Therefore,  though 
this  principal  of  ^6500  is  a  debit,  yet  its  interest  from  the  30th  June  to  30th  August  must 
be  carried  over  to  Morris'  credit.  When  sums  fall  due  in  this  manner,  subsequent  to  the 
date  of  the  account  on  both  sides,  extend  the  time  and  interest  in  red ;  then,  before  you 
balance,  carry  over  the  balance  of  the  "  red  interest"  to  the  proper  side. 

5.  By  looking  attentively  at  the  small  marginal  figures  above,  you  will  see  how  the  balance 
of  the  interest  is  found  and  disposed  of.  For  the  Day  Book  entry  of  it,  see  note  5,  p.  96. 
It  is  put  to  the  debit  of  our  interest  column,  to  close  it,  and  at  the  same  time  to  Morris' 
credit.  Afterwards  the  account  closes  in  all  respects  like  his  account  in  the  Ledger.  As 
there  is  no  entry  in  any  book  to  show  by  what  process  this  balance  of  interest  is  found,  a 
letter  press  copy  of  all  such  accounts  should  be  preserved  in  a  book  kept  for  the  purpose. 
We  have  left  the  exchanges  to  be  computed  at  the  end  of  the  year,  as  is  often  done  in  busi- 
ness. 

6.  In  stating  an  account  current  of  any  kind,  always  use  such  words  as  will  express,  in  the 
most  concise  and  perspicuous  terms,  the  origin  of  the  transactions,  without- any  regard  to  the 
technical  expressions  used  for  the  same  entries  in  your  Ledger. 

Those  who  desire  to  become  expert  at  making  out  accounts  of  this  kind,  must  persevere 
in  repeating  the  operation  several  times  from  their  own  books,  without  assistance  from  our 
forms. 

*  In  this  and  all  the  forms  let  the  student  use  his  own  name,  not  ours. — See  note,  p.  75. 


115 


SET   II.— DUFFS  BOOK-KEEPING. 

(Form  II,)  Messrs.  JOHN  TAYLOE  &  00. 

IN  AOOT.  OUKEENT  WITH  P.  DUFF,  Dr. 


1867. 

Feb. 
Apr. 


1867. 

Apr. 
May 


For  our  invoice  of  Teas  "^  '^Jersey" 
//    Protecting  your  draft  on  Wood  &  Co. 


for 


Paid  Protest,  &c.,  U.     My  J  '^  ct.  commission  $6. 

Accepting  your  draft  at  10  days  on  Wood  &  Co. 

Protest,  $1.     My  i  '^  ct.  commission  $3. 

Your  i  Joint  Shipment  to  London  '^  ^'  Cambria" 

===========================     Crs.      - 


$1200 
10 


$600 
4 


For  my  i  your  Joint  Shipment  to  London         .         .         .        $1600. 
//    Your  i  my  acct.  sales  of  Joint  Shipment  '^  ''  Vixen"  4093.05 

Balance  due  P.  D.     Due  by  equation  1st  Jan.  last,* 
E.  E.,  New  York,  30th  June,  1867. 


644 
1210 

604 
4980 


3J 


7488  33 


5693 


1745 


05 

28 


Note.— For  clearness  and  brevity  there  is  no  better  mode  of  stating  a  short  account  than  this.  The  subtraction  of  the 
credits  from  the  debits  is  made  to  show  the  balance.  "When  the  balance  is  against  you,  the  form  has  to  be  a  little  varied,  as 
you  see  by  Hay's  account  following.— See  page  103. 


(Form  III.) 


WILLIAM  HAY,  Esq., 

IN  AOOT.  OUEEENT  WITH  P.  DUFF,  Dr. 


1867. 

Mar. 

2 

16 

Apr. 

15 

]\Iay 

4 

June 

30 

1867. 

Feb. 

12 

Mar. 

1 

5 

Apr. 

5 

15 

June 

1 

28 

30 

For  your  half  Walker's  Invoice  of  Rice  Bot.  on  joint  acct. 
//     Carter's  protested  note  endorsed  by  you      .         .         .         . 
//    Your  half  joint  shipment  to  Liverpool  '^  "  Erie"     '   . 
//    Your  half  Finlay  &  Co.'s  Invoice  of  Pork  Bot.  on  joint  acct 
//    Balance  carried  to  your  credit  in  new  acct. 


Crs. 


For  your  Invoice  of  Table  Linen      ...... 

Cash  on  acct.  of  purchases  on  joint  speculation  . 
My  half  your  Invoice  of  Wines  sent  me  for  sale  on  joint  acct. 
Your  half  my  acct.  sales  of  goods  sold  on  joint  acct.    . 
Your  Invoice  of  Pork        ....... 

Amt.  advanced  by  you  in  joint  shipment  ^  ''  Erie"     . 
Your  half  net  proceeds  of  joint  shipment  to  Boston     . 
Your  half  returns  of  joint  shipment  to  Liverpool 
Y'our  i  dividend  net  profits  of  Ship  Boscoe 


By  Balance  due  Mr.  Hay  brought  down 
E.  E.,  New  York,  30th  June,  1867. 


600 

300 

1799 

2500 

10813 


16012 


1500 
2500 
450 
1400 
2000 
1065 
3129 
2160 
1808 


16012 


10813 


*  This  is  ascertained  by  what  we  call  a  Compound  Equation.  As  we  do  not  see  the  rule  in  any  of  our  arithmetics,  we  sub- 
join it. 

Rule.— Find  the  equated  time  of  each  side  of  the  account  by  a  simple  Equation— note  2,  p.  68.  Then  multiply  the  lesser 
side  by  the  time  that  intervenes  between  these  two  equations,  and  divide  the  product  by  the  balance  of  the  account;  the  quo- 
tient is  the  time  to  count  baclc  or  forward.  If  the  balance  is  on  tlie  side  of  the  earliest  equation,  count  back  from  that  date ; 
but  if  it  be  on  the  side  of  the  latest  equation,  count  forward  from  that  date. 

Let  us  illustrate  the  rule  by  Taylor  &  Co.'s  account  as  above  stated — refer  to  the  Day-Book  for  the  time  when  each  amount 
falls  due.  We  find  by  simple  equation  that  the  Dr.  side  falls  due  April  6th,  and  the  Cr.  side  May  5th.  The  time  between  these 
ociuations  is  29  days :  and  the  lesser  side  of  the  account  is  $5693.  X  29  days  =  165.098  -^  $1745  (the  balance)  =  95  days.  Now 
the  balance  being  on  the  side  of  the  earliest  equation— April  6th,  we  must  count  back  from  that  date  95  days,  which  brings  us 
^.o  the  1st  January,  the  day  upon  which  this  balance  is  due. 

116 


MERCANTILE   FOEMS. 


Form  IV.— See  Note  1,  p.  82. 
SALES  or  MEROHATOISE  sold  by  order  and  for  account  of  E.  Morris,  Esq.,  London. 


1867. 

Feb. 


Mar. 


1867. 

Feb. 


Mar. 


5 
9 

18 
12 


1 

5 

12 

20 
12 


Sold  for  Cash  to  J.  Lorillard — 

1  pipe,  120  galls.,  Port  Wine 
Sold  to  William  Park  at  4  months — 

5  pipes,  600  galls..  Port  Wine 
Sold  for  Cash  to  W.  Bryant  &  Co.— 

3  pipes,  360  galls..  Port  Wine, 
Sold  K.  Banks  for  Cash— 

2  pipes,  240  galls.,  Port  Wine 

For  net  proceeds  of  10  pipes  Port  Wine  sold  in  New  Or- 
leans, Kec'd  Barclay  &  Co.'s  acceptance  at  60  days 
from  date  for         .....         . 

Taken  to  my  acct.  the  remaining  9  pipes,  1080  galls.,  at 
market  price  @  60  days         .         .         .        @  $3 


@  $3. 


3.50 
3. 


3.50 


4500. 
3240. 


CHARGES. 


Paid  Duties         ....... 

//      Freight  and  Primage  ..... 

//     For  Grauging       ...... 

w     Cartage  and  Cooperage         .... 

//     Cartage,  Freight,  and  Insurance  of  10  pipes  shipped 
to  New  Orleans      ..... 

II     R.  Banks,  for  overgauged  Wine  . 
Storage       ........ 

Advertising         .         .         .         .         .         .         . 

Commission  and  Guarantee  5  per  cent,  on  $12120. 

Net  proceeds  due  in  Cash  2d  May 

E.  E.  New  York,  ") 
March  12,  1867.  j 


2222.22 

167.78 
1.50 
3.50 

28. 
21. 

3.50 
14.50 
606. 


P.  Duff. 


1.  The  Account  Sales  is  always  drawn  from  the  Commission  Sales  Book ;  or,  if  that  book  is 

not  kept,  from  the  Day  Book.  No  entry  whatever  ought  to  appear  in  the  account  but 
wliat  relates  to  the  sales ;  and  nothing  should  appear  in  the  charges  but  the  expenses 
attending  the  Sales.— See  Note  3,  p.  68. 

2.  The  rule  for  equating  the  time  is  given  on  page  68.    Or  the  student  may,  if  he  prefers 

them,  work  by  those  given  in  his  Arithmetic ;  but  I  would  recommend  him  to  prac- 
tise upon  the  one  he  intends  to  use  until  he  can  operate  with  dexterity  and  accuracy. 
8.  When  you  make  out  an  Account  Sales,  with  part  of  the  consignment  unsold,  give  a  concise 
statement  of  the  goods  unsold  at  the  foot  of  the  account.— See.Note  4,  p.  68. 


360 
2100 
1080 

840 

7740 


12120 


3068 


9052 


117 


SET  II.— DUFF'S  BOOK-KEEPING. 


Form  V.— See  Note  4,  p.  90. 

ACCOUNT  SALES  of  40  Bales  Brussels  Oai-peting,  sold  for  the  joint  account  of  P.  Duff  of 
New  York,  E.  Morris  of  London,  and  J.  Taylor  &  Co.  of  New  Orleans,  each  one-third. 


1867. 

May 


1867. 

Apr. 


May 


Sold  to  Warden  &  Bell— 

120  pieces,  4250  yds @  $2. 

Net  proceeds  of  55  pieces  sold  at  Austin  &  Co.'s  Auction     . 

Taken  to  my  own  account  the  remaining  55  pieces,  1907  yds.  @  $2. 


CHARGES. 


Paid  Duties  to  the  Custom-house 
//     Freight  and  Primage  per  "  Yixen"  . 
//     Insurance  against  fire  .         .       '  . 
//     Cartage  and  labor 

Storage  $3,  Advertising  $10 

Commission  2|  per  cent,  on  $15874 

Net  proceeds 

Of  which  my  i  is 

II         R.  Morris'  do.  at  his  credit  due  this  day 
'       //         J.  Taylor  &  Co.  do.  do. 


E.  E.  New  York 
May  18,  1867 


:} 


3000. 

150. 

33. 

2. 

13. 

396.85 


4093.05 
4093.05 
4093.05 

$12279.15 

Duff. 


8500 
3560 
3814 


15874 


_3594 
12279 


85 
15 


FoRivi  VI. — A  Foreign  Bill  of  Exchange. — See  Note  6,  p.  7G. 
Exchange  for  £1000  Sterling.  New  York,  February  25,  18G7. 

Sixty  days  after  sight  of  this  our  first  Exchange  (second 
and  third  not  paid),  pay  to  the  order  of  Peter  Duff  One  Thousand  Pounds  Sterling. 
for  value  received,  and  place  the  same  to  account  as  per  advice  from 
To  Robert  Morris,  Esq.,  |  Yours,  respectfully. 

Merchant,  London.        J  Baker  &  Fox. 

Form  YII. — An  Inland, (^ill,  or  Draft. — See  Note  2,  p.  70. 
SlOOO./gO^  .y  New  Orleans,  December  10,  1866. 

Ten  days  afi^r  siffht,  pay  to  the  order  of  Messrs.  Ryan  &  Dale  One  Thousand 
Dollars,  value  receiylea,  ^jlccount  of, 

To  Mr.  PETERjPJtjF^.  n  Yours,  respectfully, 

Merchant,  New  York,  j  John  Taylor  &  Co. 


S500.J>,o^ 


Form  YIIL— An  Order.— See  Jan.  24,  p.  72. 

New  York,  January  24,  1867. 
Pay  to  the  order  of  Messrs.  Warden  &  Bell  Five  Hundred  Dollars,  for 
value  received,  for  Yours,  respectfully. 

To  James  Walker,  Esq.,  |  P.  Duff. 

Merchant,  New  York,      j 

Form  IX. — An  Order  for  Merchandise. — See  Note  3,  p.  70. 
•S108.-jPqO^  New  York,  January  15,  1867. 

Pay  to  the  order  of  Mr.  Henry  Pryor  One  Hundred  and  Eight  Dollars, 
in  Merchandise  out  of  your  store,  for  account  of 
To  Mr.  Peter  Duff,     )  James  Carter. 

Merchant,  New  York,  j 

118 


MERCANTILE  FORMS. 

Form  X. — A  Promissory  Note. — See  Note  4,  p.  72. 
$1515.3^%.  New  York,  January  30,  1867. 

Sixty  days  after  date,  for  value  received,  I  promise  to  pay  to  the  order  of 
Mr.  Peter  Duff  Fifteen  hundred  and  fifteen  dollars,  ■^^^. 

William  Hay. 


Extensive  houses  now  generally  arrange  such  transactions  with  an  acceptance.     The  fol- 
lowing is  the  form : 

Form  XI. — An  Acceptance  for  the  above  transaction. 

$1515.fo'o-  .  New  York,  January  30,  1867. 

Sixty  da^^  a^r  date,  for  value  received,  please  pay  to  my  order  Fifteen 
hundred  and  fifteen  D&i^^s,  /o%- 
To  William  Hay,  Es(^^  ^.  P.  Duff. 

Merchant,  New  Yorl£i  j^ 
With  the  left  side  up,  Hay  writes  across  the  face,  in  red  ink,  "  Accepted." 

Wm.  Hay. 
This  form  will  be  found  convenient  for  making  payable  at  a  particular  place — say  Phila- 
delphia.     The  drawer  then  says  "  pay  to  my  order  in  Philadelphia."      The  acceptor  must 
name  the  place  where  he  will  have  funds  to  take  it  up — thus,  he  writes  across  the  face, 
''  At  the  Girard  Bank."  Wm.  Hay. 

To  negotiate  this  acceptance,  the  drawer  has  to  endorse  it  himself,  it  being  payable  to  his 
own  order. 

Form  XII. — A  Joint  Promissory  Note. 
^SOO.yOi)^.  New  York,  January  30,  1867. 

On  demand,  for  value  received,  we  or  either  of  us,  promise  to  pay  to  the 
order  of  Mr.  Peter  Duff,  Five  hundred  dollars.  Wm.  Hay, 

James  Carter. 

Form  XIII. — A  Receipt  in  full. — Note  4,  p.  70. 
New  York,  January  16,  1867.     Received  from  James  Carter  Five  hundred  and 
SIXTY  dollars  in  full. 
^560.-fO^o_.  p.  Duff. 

Form  XIY. — A  Receipt  for  money  on  account. — Note  2,  p.  84. 
8800.         Received  from  Peter  Duff,  Eight  hundred  dollars,  on  account. 
New  York,  March  31,  1867.  R.  Lenox. 

Form  XY. — A  Receipt  for  an  endorsement  upon  a  note. — Feb.  12,  p.  74. 
S2000.j<^qOq.        Received  from  Mr.  Thomas  Edwards,  Two  thousand  dollars,  which  is 
endorsed  upon  his  note. 

New  York,  February  12,  1867.  P.  Duff. 

Form  XYI. — A  Receipt  for  a  promissory  note. — January  18,  p.  72. 
$600.         Received  from  Mr.  James  Carter,  his  note  at  twenty  days  for  Six  hundred 
DOLLARS,  which,  when  paid,  will  be  in  "full  to  date. 

New  York,  January  18,  1867.  P.  Duff. 

.     Form  XVIL— An  Endorsed  Note.— Feb.  9,  p.  74. 
§2100.y%.  New  York,  February  9,  1867. 

Four  months  after  date,  for  value  received,  I  promise  to  pay  to  the  order 
of  Messrs.  Warden  k  Bell,  Two  thousand  one  hundred  dollars. 

Wm.  Park. 

Endorsed  notes  are  always  drawn  payable  to  the  endorser,  not  to  the  holder. 

119 


SET  II.— MERCANTILE   FORMS. 

Form  XYIII. — A  Letter  of  Introduction. 

New  York,  May  30,  1867. 
Dear  Sir, 

I  have  tlie  pleasure  of  introducing  to  you  the  bearer,  my  much  esteemed 
friend,  William  Hay,  Esq.,  Merchant  of  this  city.      While  in  London  he  wishes  to  confer 
with  you  upon  some  business,  the  nature  of  which  he  will  himself  explain  to  you. 
Eecommending  Mr.  Hay  to  your  usual  kind  attention,  I  remain. 

Dear  Sir, 
To  Robert  Morris,  Esq.,  \  Yours,  Respectfully, 

Merchant,  London.  j  P.  Duff. 


Form  XIX. — A  Letter  of  Credit. 
Dear  Sir, 


New  Orleans,  March  30,  1867. 


If  the  bearer,  Mr.  James  Draper,  desires  to  make  any  purchases  of  merchandise 
of  you  on  credit,  you  may  consider  us  responsible  to  you  for  the  payment  of  the  same,  to  any 
amount  not  exceeding  One  thousand  dollars.  In  the  event  of  his  failing  to  make  his  pay- 
ments according  to  agreement,  we  require  you  to  give  us  timely  notice  of  the  same.    We  are, 

Dear  Sir, 
To  Mr.  Peter  Duff,      |  Yours,  Respectfully, 

Merchant,  New  York.  J  John  Taylor  &  Co. 


Form  XX. — A  Letter  with  an  Account. — See  Form  I.,  p.  115. 

New  York,  June  30,  1867. 
Dear  Sir, 

Inclosed  I  hand  you  your  account  current  balanced  by  $5676.59,  in  my  favor 
due  this  day ;  to  which,  if  you  find  it  correct,  please  make  your  books  conform.  I  am  with- 
out any  of  your  favors  to  reply  to,  but  remain. 

Dear  Sir, 
To  R.  Morris,  Esq.,  ]  Yours,  Respectfully, 

Merchant,  London,  j  P.  Duff. 


Form  XXI. — A  Letter  of  Advice. — See  Note  5,  p.  84,  and  Note  1,  p.  86. 

New  York,  April  10,  1867. 
Gentlemen, 

I  have  to  inform  you  that  I  have  this  day  paid  your  bill  of  $1200,  on  Sidney 
Wood  &  Co.,  which  was  protested  for  non-payment.  Your  bill  of  $600  on  the  same  parties, 
has  also  made  its  appearance,  and  the  drawees  having  apprised  me  of  their  inability  to  give 
protection  to  your  signature,  I  have  accepted  for  your  honor  and  will  take  care  of  it  at  maturity. 
Bill  paid  $1200.  Expenses  $4.  Commission  J  per  ct.,  $6.  Due  this  day  $1210. 
Bill  accepted  supra  protest  $600.  Protest  $1.  Commission  $3.  Due  23d  inst.,  $604 
which  amounts  please  place  to  credit  of. 

Gentlemen, 
To  Messrs.  John  Taylor  &  Co.,  \  Yours,  Respectfully, 

Merchants,  New  Orleans.  j  P.  Duff 


Form  XXII. — A  Letter  of  Advice. — See  Note  4,  p.  76. 

London,  December  24,  18GC. 
Dear  Sir, 

In  my  respects  of  the  18th  instant,  I  inclosed  you  an  invoice  and  bill  of  lading 
of  a  consignment  of  30  Pipes  Port  Wine  shipped  per  '^  Herald,"  which  sailed  on  the  19th. 
I  have  now  to  advise  you  that  I  have  this  day  valued  upon  you  at  10  days  on  account  of 
the  same  for  $2500  in  favor  of  Robert  Banks,  which  please  honor  for  account  of 
To  Mr.  P.  Duff,  )  Yours,  Respectfully, 

Merchant,  New  York.  J  R.  Morris. 

120 


DUFF'S  BOOK-KEEPING 

PART  II. 


121 


DUFFS  BOOK-KEEPING. 

PART  11. 


EXEMPLIFYING  PARTNEKSHIP  BOOKS 

Upon  two  different  methods,  for  greatly  abbreviating  and  simplifying  the  usual  process  of 
Double  Entry  Book-keeping.  Adapted  to  the  most  limited  retail,  or  to  the  most  ex- 
tended wholesale  business ;  with  the  whole  of  the  auxiliaries,  with  part,  or  without  any  of 
them.     Illustrating  a  new  method  of 

PROVING  THE  LEDGER:* 

By  means  of  which,  no  entry  once  made  upon  the  Day  Book  or  any  of  the 
Auxiliaries  can  afterwards  be  omitted  at  any  stage  of  its  passage  to  the 
Ledger  without  certain  detection.     Embracing  also  an  exemplification  of  the 

PRIVATE  LEDGER, 

By  means  of  which  the  results  of  the  business  can  only  be  known  to  the  partners. 

Practical  directions  for  transferring  the  contents  of  the  old  Ledger  to  the  new 
ONE,  illustrating  the  formation  of  a 

NEW   FIRM   BY   THE   INTRODUCTION   OF  A   NEW   PARTNER. 

Also,  particular  directions  for  conducting  partnership  books  during  settlement,  after 
dissolution. 

MAKING  OUT  PARTNERSHIP  BALANCE   SHEETS. 

Rates  of  Commission  and  Storage  established  by  the  Chambers  of  Commerce  of  the 
cities  of 

NEW  YORK  and  PHILADELPHIA,  with  various  additional  matters  of  important  in- 
formation for  men  of  business. 

*  We  do  not  present  the  six-columned  Day  Book  or  Journal  as  original.     Our  method  of  proving  the  Books 
is  applicable  to  any  form  of  Day  Book  or  Journal. 

123 


SET  I.— PAET  II.— PARTNERSHIP  BOOKS. 


PRELIMINARY  REMARKS. 

1.  We  now  propose  to  supply  what  other  authors  have  omitted — an  arrangement  of  the 
Double  Entry  principle,  practically  adapted  to  retail  business, — a  method  divested  of  the 
cumbrous  machinery  of  Auxiliaries,  the  dilatory  intervention  of  the  Journal,  and,  above  all, 
the  voluminous  masses  of  writing  created  by  the  common  mode  of  keeping  and  posting  the 
Cash  and  Merchandise  accounts. 

2.  Though  the  following  method  is  conducted  strictly  under  the  first  fundamental  rule  of 
Double  Entry — equal  debits  and  credits — it  will  be  readily  seen  that  a  great  saving  of  books, 
writing,  posting  and  checking  is  effected,  with  increased  security  against  error,  with  the  full 
benefit  of  all  the  information  obtained  by  the  ordinary  Double  Entry  process,  and  with  the 
convenience  of  having  your  personal  accounts  daily  posted  up  and  ready  for  settlement  at  a 
minute's  notice.     Let  us  state  its  advantages  over  the  common  process  more  distinctly. 

1st. — Dispensing  with  all  books  but  the  Day  Book  and  Ledger. 

2d. — Writing  in  the  cash  and  merchandise  accounts  in  the  Ledger  reduced  to  about  one 

LINE    FOR    ONE    HUNDRED. 

3d. — Checking  the  cash  and  merchandise  posting,  reduced  in  the  same  proportion. 

4th. — A  yearly  saving  of  forty  or  fifty  folios  of  the  Ledger. 

5th. — Increased  security  against  error,  as  no  entry  once  entered  upon  the  Day  Book  can 

be  omitted  in  posting  without  detection. — See  Note  1,  p.  135. 
Cth. — Daily  posting  of  the  personal  accounts,  thereby  having  them  always  ready  for 

settlement. 

3.  These  are  considerations  which  entitle  this  method  to  the  particular  attention  of  all 
retailers.  And  though,  in  ordinary  retail  business,  the  Day  Book  and  Ledger  are  the  only 
books  absolutely  required,  we  shall  show  hereafter,  that  as  the  business  increases  this 
arrangement  will  not  be  disturbed  by  the  introduction  of  any  one,  or  all  the  auxiliaries  in 
use.  It  is  therefore  not  only  adapted  to  the  most  minute  retail  business,  but  to  the  most 
extensive  operations  of  commerce. 

4.  No  person  should  attempt  to  learn  the  science  by  commencing  here.  If  he  is  unac- 
quainted with  its  principles,  he  must  first  acquire  them  by  the  course  of  instruction  in  the 
preceding  part  of  this  work.  Afterwards  the  form  of  these  books,  although  somewhat  com- 
plicated in  appearance,  can  be  understood  and  practised  with  ease.  Indeed,  after  the  Day 
Book  Entry  is  once  correctly  made,  the  subsequent  steps  partake  much  of  the  simplicity  of 
Single  Entry.  But,  for  obvious  reasons,  no  one  should  attempt  to  apply  it  to  business  until 
he  has  gone  through  a  course  of  exercises. 

5.  The  following  Day  Book  is  ruled  with  six  columns;  the  debits,  as  usual,  always 
occupying  the  left,  and  the  credits  those  on  the  right.  The  column  next  the  writing  on  the 
left  and  that  on  the  right,  as  you  perceive  by  the  post  marks,  are  the  only  ones  that  are 
posted  in  detail.  The  cash  and  merchandise  amounts,  both  debits  and  credits,  are  forwarded 
from  page  to  page  until  the  30th  March — p.  128.  From  there  they  are  posted  in  one  sum, 
affixing  to  it  the  post  mark  as  usual. 

In  making  the  Day  Book  Entry,  care  must  be  taken  to  extend  all  cash  and  merchan- 
dise entries  into  their  own  columns.  And  those  who  are  very  expert  in  addition,  and  who 
desire  to  keep  their  work  free  from  erasures,  should  foot  and  prove  the  addition  first  upon 
a  waste  sheet  of  paper,  taking  care  afterwards  to  keep  each  set  of  figures  under  its  own 
column. 

6.  In  making  an  entry,  the  same  form  of  expression  is  used  as  upon  a  common  Journal. 
In  entering  an  invoice  of  sale,  the  particulars  are  first  short-extended,  like  Evans's  or  But- 
ler's entries  on  the  next  page. 

7.  Observe,  the  Cash  and  Merchandise  accounts  can  be  posted  monthly  or  yearly,  as  may 
suit  your  convenience,  recollecting  that  every  time,  these  accounts  are  posted,  it  makes  a 
period  in  the  amounts  brought  forward  on  the  Day  Book,  and  the  new  period  commences 
with  the  heads  of  the  columns  empty. — See  Note  1,  p.  128. 

124 


DBS. 


NEW  YOBK,  January  2,  1867. 


Ces. 


Mdse. 


3380 


Cash. 


4000 


954 


1 

1200 

400 

4 


271 


5 

337 


3380 

Paid 
6al. 


4954 

|l700  , 


2247 
4954 
3380 


50 


50 


50 


25 


2^ 


1700 
3253 


10581 


Cash,  Dr.  to  Sundries, 
To  P.  Dufif,  received  on  account  of  capital, 
"  W.  Gordon, 

//         

Mdse.,  Dr.  to  Sundries, 
To  T.  P.  Cope  &  Sons,  for*InToice, 
"   Wm.  Hay,  for  Invoice, 
"  Cash,  paid  freight, 

=      5.  = 

Sundries  To  Cash, 

Expense  account  paid  laborers. 

T.  P.  Cope  &  Sons,  remitted  them. 

"Wm.  Hay,  remitted  him. 

Exchange  account,  paid  Premium  on  drafts. 

A/ 

Robert  Martin  (270  Bowery),  To  Mdse., 

1  pair  fine  Boots, $6. 

Ptepairing  two  pair  do 1. 

I'pair  Ladies'  Boots      ....    2.50 

w        

James  Carter,  To  Mdse., 

1  pair  Boys'  Shoes,  ....  $1.75 

Footing  1  pair  Boots,  ....    2.75 

//         

Robert  Evans  (Buffalo),  To  Mdse., 

12  pair  Boots,                        at  $8.  $96. 

24     "        "         Light,           "     6.  144. 

24    "    Boys'  Shoes,             "     1.25  30. 

Packing  case  and  cartage,  1.25 

10.  ~^ 

P.  Duff,  To  Cash  on  account, 

w        = 

James  Moore  (Pine  St.),  To  Mdse.,  1  pr.  Boots,* 

//         

Robert  Butler  (Albany),  To  Mdse., 

48  pair  Ladies'  Boots,  at  $2.  .  .  $96. 
60  "  Men's  do.  "  3.  .  .  180. 
60  "  Boy's  do.  "  1.  .  .  60. 
Box  and  cartage,         ....       1.25 

//        

Cash  To  Mdse.  for  sales  to  date, 

=     20.     ==== 
W.  Gordon,  To  Cash  on  account, 

„        

J.  Carter,  To  Mdse.,  for  2  pair  Shoes,  .        .    $2. 

Amounts  forwarded, 

Cash, 

Merchandise 

^   Proof      


1.  Pencil  the  cash  paid  under  the  amount  received,  and 
you  can  see  the  balance  as  often  as  you  desire. — 
See  Note  1,  p.  128. 

*  Entries  that  are  collected  before  posting,  are  marked 
so  in  the  folio  column,  and  the  pen  is  run  lightly  through 
the  figures  on  both  sides.  Omit  these  figures  in  the  ad- 
dition, and  dispose  of  the  cash  as  if  received  for  a  ready 
money  sale. 


125 


Cash. 


MdM 


2500 
1500 


2500 
800 


7300 
1700 
1580 


10581 


SO 
1605 


50 


50 


50 


271 


337 


26 


954 


10 


1700 


50 


1680 


50 


2        Drs. 


1  January  20,  1867. 


Crs. 


Mdse. 


338C 


74 


16 
630 


60 


Cash. 
4954 


200 


224 


i  5( 


45 


3  2( 


600 

200 

6 


25 


45 


16 


3146 
5154 
4160 


12460 


5( 


5( 


50 


2C 


20 


Bro't  forward,     . 

//        

R.  Martin  (270  Bowery),  To  Mdse.,  rep'g  Boots, 

^^      31.    =-- =^ 

P.  Duff,  To  Mdse.  for  1  pr.  fine  Boots, 

//        ~    

W.  Gordon,  To  Mdse.  for  1  pr.  Ladies'  Boots, 

-^    Feb.  1.       -:^=.== 

2  Mdse.  To  Sundries, 
To  Cash  paid  Journeymen  to  date, 
"  J.  Day,  foreman's  wages  to  date, 

James  Day,  To  Sundries, 
To  Cash,  paid  him  on  account, 
"  Mdse.,  a  Black  Dress  Coat, 

===-=       5. — 

Expense  acct.  to  Cash  pd.  for  Coal  $3,  post,  20, 

//        

Sundries  To  Cash, 

T.  P.  Cope  &  Sons,  remitted  draft. 

Wm.  Hay,  do.       do. 

Exchange  acct.,  paid  Prem.  on  the  above  drafts. 

=========      10.  =- 

Sundries  To  Mdse., 

J.  Day,  pd.  his  order  to  W.  Price. 

R.  Martin,       do.    .    to  James  Eeed. 

w        

Mdse.,  Dr.  to  Cash  pd.  Journeymen, 

15.    ^-^^===~ 

Mdse.  To  Cash,  pd.  Davis's  Auction  Bill, 

// 

J.  Day,  Dr.  to  R.  Martin. 

Por  our  order  on  R.  Martin. 

_ _ 1^ _____ — — . 

A.  Bell  To  Mdse.,  for  1  full  Circle  Cloak, 

rr===:^^.':r~  20.        ^'^==^  

Mdse.,  Dr.  to  Edward  Pryor, 
For  his  Invoice  of  Trimmings, 

// 

Cash  To  E.  Pryor,  rec'd  in  loan, 

// 

A.  Bell  To  Mdse.,  repaired  Coat  and  Vest, 

It  -~ 

E.  Pryor  To  Mdse.,  2  pr.  Blk  Cassim.  Pants  at  $8. 

'  Amounts  forwarded, 

Cash, 

Merchandise A 

Proof 

1.  After  the  books  are  open  we  discontinue  the  useless, 

though  universal,  practice  of  continually  repeating 
the  place  of  business  at  the  head  of  every  page, 

2.  Mdse.  is  Dr.  for  the  expense  of  manufacturing,  al- 

though it  is  more  proper  to  carry  rents,  clerks' 
wages,  and  the  expense  of  selling  it,  to  the  Ex- 
pense account. 

3.  To  save  writing  we  may,  hereafter,  set  the  footings  of 

the  Cash  and  Merchandise  columns,  at  once  into 
the  proof  column. 

126 


7300 


50 


25 


60 


200 


7635 
3100 
1725 


12460 


20 


20 


Cash. 


1700  5C 


24 


20 

3  2( 
706  50 


16 
630 


Mdse. 


1580 


5C 


25 


47 


45 


Dks. 


February  28,  1867. 


Mdse. 
416( 

5( 


Cash. 


615^ 


314( 


2(1 


25( 


30( 


20( 


4t 


4-c 


80( 


4( 


4e 


63^ 


65( 


4417 
6354 
478C 

15551 


2( 


2( 


Bro't  forward, 

//        -_ 

Mdse.  To  Cash,  pd.  Journeymen, 
-  ^ 

Mdse.  To  J.  Day,  wages  to  date  as  foreman, 
=====     Mar.  .1.   ^-=- 
1 E.  Pryor  To  Cash,  pd.  loan  of  20th  ult. 
// 

Sundries  To  Mdse., 

P.  Duff,  for  6  yds  Black  Cloth,         at  $8. 
W.  Gordon,  16  yds.  Fig'd  Satin,  1.50  24. 

1  doz.  Black  Cravats,  12. 

=====     10.    -^ 

Cash  To  R.  Evans,  rec'd  hy  mail, 

__  ^^ 

Sundries  To  Mdse., 

R.  Evans,  1  ps.,  36  yds..  Satin,  at  $1.25 

E.  Pryor,  pd.  his  order  to  A.  Wood. 
-  ^^  __ 

Sundries  To  Mdse.,  . 

A.  Bell,  1  fine  Hat. 

Samuel  Gaynor,  4  yds.  B.  Blk.  Cloth,  at  $10.  40. 

1     "     Cassimere,  8^ 

====-=          20.       =:=:= 

«  T.  P.  Cope  &  Sons  To  Cash, 

Pd.  their  draft  at  sight  for  Bal.  of  account. 

//  -■ 

Cash,  Dr.  To  Robert  Butler,  rec'd  per  mail, 

A/ 

Edward  Pryor  To  Andrew  Bell, 
for  our  order  on  the  latter. 
^^ 

'  S.  Gaynor  To  Mdse.,  paid  his  order 

to  H.  Wallace, 
—  — ^      25.    ===== 

Mdse.  To  Sundries, 

To  T.  P.  Cope  &  Sons,  for  Invoice  of  Cloths, 
"   Cash,  paid  freight  on  same, 
====—     30.    -==== 

Cash  To  Mdse., 

For  Cash  sales  to  date. 

Amounts  forwarded,        .... 

Cash, 

Merchandise 

Proof      


1.  We  wish  our  readers  to  observe,  that  though  want  of 

room  compels  us  generally  to  write  only  the  initials  | 
of  the  Christian  names  of  persons,  in  business  we 
direct  these  to  be  written  in  full;  confusion  and 
trouble  are  frequently  occasioned  by  the  contrary 
practice.  Legal  titles  should  also  always  be  chosen : 
"Commercial  Advertiser"  or  "Evening  Express" 
are  not  the  proper  titles  for  accounts  in  our  books. 

2.  Recollect  Note  1,  Carter's  acct.,  p.  105. 

3.  Recollect  Rule  IX.,  p.  40. 


7635 


50 


250 


300 
40 


504 


Cash. 


3100  2C 
86 

200 


800 


8779 
4166 
2606 


15551 


BIdse. 


30 


1725 


84 


51 


4S 


48 


650 


127 


Drs. 


March  30,  1867. 


Crs. 


Mdse. 

Cash. 

3 

2 
3 

4 

1 
1 

4780 
50 

- 

6354 
37 

25 

4417 
60 

45 
90 

20 

1 

20 

4632 
6391 
4830 

20 
25 

15853 

45 

Bro't  forward, 

_ ;/ 

Expeuses  To  Cash,  paid  store  rent  to  date, 

If        

Merchandise  To  James  Day, 

for  foreman's  wages  to  date. 

-==:==::,        31.        —  — 

James  Carter,  Dr.  to  Cash  on  account, 

1^        _ 

Expense  account  To  James  Carter, 

for  3  months'  salary  to  dates, 
// 

Pro£t  &  Loss  To  Cash,  for  a  counterfeit  $20  note, 

_ ^         _ 

Cash  To  Robert  Butler, 

Received  in  full  per  mail. 

Total  amount  to  date 

Cash 

Merchandise 

Proof      


Merchandise  on  hand  per  Inventory  at  date  is 
$3217.50.— See  Invoice  Book,  p.  137. 


8779 


50 


90 


37 


8956 
4291 
2606 


15853 


25 


45 


Cash. 


14166 
60 


45 


20 


20 


2606 


Mdae. 


1.  To  find  the  balance  of  cash  in  hand,  after  a  period  of  the  Day  Book  is  posted,  you 
musi  add,  with  your  pencil,  the  balance  of  the  posted  part  of  the  cash  account  on  the 
Ledger  to  the  footing  of  the  debit  column  of  that  account  on  this  book;  then  deduct  the 
amount  of  the  credit  column,  and  you  have  the  balance  in  hand,  as  in  note  1,  p.  23. 

2.  Care  must  be  taken  to  extend  the  cash  and  merchandise  entries  into  their  own 
columns.     Each  entry  should  be  carefully  examined  before  adding  up. 

3.  This  form  of  Day  Book  will  be  found  applicable  to  almost  any  kind  of  business,  the 
Cash  columns  being  always  required  as  they  are  here.  Those  which  we  use  for  Merchan- 
dise may  be  used  for  any  title  that  will  represent  the  person's  principal  business;  the  Medi- 
cal and  Legal  professions  can  use  it  for  their  Practice;  Manufacturers  would  use  it  for  their 
Factory,  Hotels  would  use  it  for  their  Expenses,  &c. 

4.  Every  business  has  an  account  from  which  its  principal  income  is  derived.  This  and 
the  cash  account  must  always  create  a  great  number  of  entries,  and  any  mode  of  posting 
these  entries  in  accumulated  amounts,  must  materially  diminish  the  amount  of  writing  in 
the  Ledger.  No  method  has  yet  been  tried  which  accomplishes  this  object  with  so  much 
simplicity  and  accuracy  as  those  explained  in  this  and  the  following  set.  I  am  aware  that 
some  do  it,  or  attempt  to  do  it,  by  the  page,  by  the  week,  and  by  the  month,  by  means  of 
what  is  called  a  "  collecting  sheet.^^  But,  on  account  of  its  great  impediment  to  checking, 
and  still  greater  difl&culty  in  detecting  errors,  this  mode  of  posting  can  never  be  recom 
mended. 

128 


PARTIsIERSHIP    BOOKS. 

THE  LEDGER. 


INTRODUCTORY   REMARKS. 

1.  The  following  Ledger  is  opened,  conducted,  and  closed  upon  the  same  principles  as 
those  already  explained.  I  have  made  one  or  two  slight  deviations  from  the  common  course, 
which  the  book-keeper  may  or  may  not  adopt,  as  he  pleases.  In  order  to  conflict  as  little  as 
possible  with  the  established  process  of  teaching,  I  retained  the  prepositions  To  and  By  in 
the  Double  Entry  Ledgers  in  the  first  part  of  this  work ;  but  as  I  consider  them  of  no  more 
use  than  the  old  practice  of  filling  up  the  cent  column  with  unmeaning  ciphers,  I  have 
dropped  them  in  both  Ledgers  in  this  part  of  the  work. 

2.  In  the  next  place,  I  have  in  some  instances  briefly  detailed  the  Day-Book  entries  on  the 
Ledger.  I  am  aware  that  some  ridicule  all  attempts  at  entering  details  of  any  kind  of  busi- 
ness upon  the  Ledger,  and  many  persons  are  impressed  with  the  idea,  that  it  is  contrary  to 
the  rules  of  accounts  to  do  so.  But  retailers  will  be  perfectly  safe  in  giving  what  I  suggest 
a  trial.  It  is  as  easy  to  write  1  lb  tea,  a  hat,  a  coat,  or  a  pair  of  boots,  at  a  man's  account,  as 
merchandise.  The  book-keeper's  experience  will  soon  enable  him  to  judge  how  far  it  will 
be  for  his  convenience  to  carry  out  this  method  of  posting,  recollecting  that  it  is  only  recom- 
mended to  retailers. 

3.  While  teaching  the  principles  of  the  science,  dividing  the  Profit  &  Loss  account  into 
Expense,  Exchange,  Interest,  &c.,  renders  the  subject  more  complex  and  tends  to  retard 
rather  than  facilitate  the  student's  progress.  For  this  reason  none  of  these  accounts  were 
introduced  in  any  of  the  preceding  sets :  but  we  have  given  an  exemplification  of  each  in 
this  and  the  following  set,  with  the  necessary  directions  for  closing.  We  may  also  observe, 
that  these  accounts  ought  always  to  be  kept  in  every  business  that  creates  any  considerable 
number  of  entries  for  them.     Note  4,  p.  24.  * 

4.  I  have  opened  the  Ledger  with  a  cash  capital  of  $4000,  placing  $2500  at  the  credit 
of  Dufi",  and  $1500  at  the  credit  of  Gordon.  The  business  closes  with  a  gain,  which  is  divided 
and  carried  to  the  credit  of  each  partner  in  proportion  to  his  capital. 

5.  It  may  be  proper  to  observe  here,  that  the  rules  of  accounts  have  nothing  to  do  with 
regulating  the  division  of  profits  or  losses ;  that  is  altogether  a  matter  of  private  agreement. 
In  our  next  Ledger  will  be  found  an  illustration  of  the  equal  division  of  profits ;  and  on 
page  181,  various  modes  of  adjusting  the  difierence  of  capital  by  interest :  our  students  shall 
have  an  ample  variety  of  illustrations. 

6.  After  closing  this  Ledger  we  have  transferred  the  contents  to  a  new  set.  This  was 
done  for  the  purpose  of  giving  another  practical  elucidation  of  that  process,  and  also  to  get 
an  opportunity  of  exemplifying  the  application  of  our  method  of  proving  the  books  to  an 
entire  set.  We  think  it  proper  to  give  this  explanation  here,  because  many  persons  imagine 
that  every  new  partner  who  is  introduced  into  a  firm,  makes  it  necessary  to  have  a  new  set 
of  books.  This  is  not  necessary,  provided  the  old  books  have  been  regularly  kept.  It  is, 
however,  generally  necessary  to  take  an  inventory  of  the  property  on  hand  and  to  make  out 
a  Balance  sheet.  The  new  partner's  name  is  then  introduced,  with  a  credit  for  whatever  he 
brings  in,  and  a  debit  for  what  the  firm  may  assume  for  him.  The  old  partners'  accounts 
are  closed  and  their  respective  shares  in  the  business  at  that  period  brought  down. 

7.  A  suspended  list  ought  always  to  be  opened  upon  these  occasions  for  such  debts  as  the 
old  partners  have  any  doubt  of  collecting. — See  Suspended  List,  p.  134. — Of  course  they 
must  make  good  to  the  new  firm  all  old  debts  for  which  they  credit  themselves  :  and  if  many 
of  these  debts  should  afterwards  prove  wholly  or  partially  irrecoverable,  the  adjustment  of 
the  matter  has  always  to  take  place  after  the  lapse  of  considerable  time, — perhaps  several 
years  :  it  then  becomes  an  awkward  and  very  troublesome  operation.  In  all  such  cases  it  is 
better,  at  the  commencement,  for  the  old  partners  to  carry  no  debts  to  their  credit  but  such  as 
they  are  absolutely  certain  of  collecting.  Leave  all  the  others  behind  upon  the  suspended  list, 
and  make  new  dividends  of  them,  between  themselves,  as  3ollected. — See  Dufi"  and  Gordon's 
Account,  page  169. 

I  129 

or  THE 


ON  CLOSING  A  PARTNERSHIP  LEDGER. 

1.  The  principles  of  opening,  closing,  transferring,  and  re-opening  books  have  been 
already  so  carefully  explained  in  tbe  first  part  of  this  work,  that  it  is  to  be  hoped  nothing 
need  now  be  repeated  that  has  been  there  explained. 

2.  The  only  new  features  in  the  process  now  before  us  are  the  dividends  of  gain  or  loss, 
the  partners'  accounts,  and  the  suspended  list;  the  management  of  all  the  other  accounts  is 
in  every  respect  the  same  as  in  individual  business. 

3.  The  manner  of  finding  the  net  gain  or  loss,  is  the  same  as  we  have  previously  explained  : 
the  division  of  it,  and  the  operation  of  closing  the  account,  can  be  best  explained  at  the 
account  itself — p.  134. 

4.  In  closing  the  personal  accounts,  omit  the  partners'  accounts,  and  leave  them  open 
until  the  last :  they,  like  the  stock  account  in  individual  business,  being  always  afiected,  as 
you  perceive  by  referring  to  them,  by  the  closing  entries  of  Profit  &  Loss,  and  must,  there- 
fore, be  left  open  to  receive  their  entries  of  gain  or  loss  when  that  account  is  closed,  which 
cannot  be  done  until  it  receives  all  its  transfers  from  the  other  accounts.  Therefore,  the 
partners'  accounts,  JProfit  &  Loss  and  Balance,  must  be  remaining  open  after  all  other?, 
are  closed  :  these  are  then  closed — first.  Profit  &  Loss  into  the  partners'  accounts,  then  the 
partners'  into  Balance :  then,  if  all  be  correct,  Balance  will  be  exactly  closed  by  these  last 
transfers  from  the  partners'  accounts.  The  accountant  should  always  first  make  the  closing 
entries  of  these  last  accounts  in  pencil,  to  be  certain  that  the  Balance  will  close  by  the  last 
entries.  For  although  this  trial  may  have  come  out  all  correct,  errors  or  omissions  may  have 
got  into  the  work  that  he  has  done  since,  which  will  compel  him  to  scratch  and  disfigure 
these,  the  most  conspicuous  accounts  in  his  Ledger. 

5.  It  may  be  proper  to  remark,  that  though  both  our  partners'  accounts  here  close  To 
Balance,  when  a  partner  draws  out  more  than  his  share  of  the  gain  and  the  amount  he  has 
paid  in,  his  acct.  closes  i?y  Balance.  When  all  the  partners' accounts  close  in  this  way,  then 
the  firm  is  insolvent.  In  short,  after  partners  have  received  their  transfer  from  Profit  & 
Loss,  their  accounts  then  close  in  eyery  respect  like  those  of  other  persons. — See  Notes, 
Balance  account,  p.  35.* 

6.  We  have  already  alluded  to  the  use  of  the  Suspended  List,  and  have  now  only  to  state, 
that  it  is  opened  for  the  purpose  of  exhibiting  a  list  of  all  such  accounts  as  we  think  we 
cannot  safely  make  a  dividend  upon  :  the  partners  must  themselves  mark  these  for  the  book- 
keeper. The  amount  of  such  accounts  must  be  known  in  order  to  enter  the  Profit  &  Loss 
account,  for  the  Ledger  will  not,  of  course,  balance  without  disposing  of  these  accounts 
either  in  Profit  &  Loss  or  Balance :  besides,  the  practical  merchant  or  mechanic  will  find 
this  companion  to  the  Balance  sheet  a  useful  monitor  every  time  it  is  made  out. 

7.  The  book-keeper  can  often  materially  shorten  the  balance  sheet  by  sending  round,  before 
making  it  out,  and  paying  off  all  trifling  balances  against  him,  and,  at  the  same  time,  by  col- 
lecting all  balances  of  this  kind.  From  inattention  to  what  I  here  suggest,  I  have  seen 
balance  sheets  made  out  with  fifty  or  sixty  accounts  of  trifling  sums  upon  them^  nearly  all 
of  which  would  have  been  paid  if  called  for. 

Note.— Wo  think  it  unnecessary  to  annex  an  index  to  this  Ledger :  we  give  one  to  the  next— page  164. 

*  If  a  partner  is  taken  into  the  firm  without  capital,  his  account  will  open  without  a  credit,  and  will  remain  so  until  th« 
hnsinesB  places  a  profit  at  his  credit. 


130 


Dr. 


DUFF. 


Cr. 


1867.   '       i 

Jan.  10 1  Cash 

31 
Mar. !  1 

31 


1  pr.  Fine  Boots. 
6yds.Blk.Cloth@$8. 
Lalance,  59,      f. 


i 

1887. 

1 

5 

Jan. 

2 

2 

6 

Mar. 

31 

3 

48 

4 

2884:47 

2943  b 

— 1 

Cash 


2500 

443  47 


2943  47 


I 

1.  Credit  each  partner  for  what  he  pays  in,  and  for  his  share  of  the  net  gain,  and  debit  him  for  what  he  draws  ont,  and  for  his 

share  of  the  net  loss.    Close  To  or  By  Balance. — Notes  4  and  5,  p.  130. 
*2,  When  a  partner  leaves  home,  taking  money  with  hira  to  lay  out  for  the  business,  he  should  leave  a  memorandum  of  the 

amount  with  the  cashier,  who  can  count  this  paper  as  money  until  the  partner  sends  him  a  statement  of  the  outlay : 

then  the  final  entry  is  made.    The  practice  of  encumbering  a  partner's  account  with  such  transactions  can  never  b© 

recommended. 


w. 


GORDON. 


1867 

Jan.  120 
31 

9 


Mar. 


Cash, 

1  pr.  Ladies'  Boots, 
16yds.F.Satin@1.50 
1  doz.  Cravats,       48.50 
31  Balance,  f. 


1 

1867. 

1 

10 

Jan. 

2 

2 

2 

50 

Mar. 

31 

3 

24 
12 

4 

1 

1 

1717  58| 

. 

1766 

08 

Cash, 


Profit  &  Loss,  1"^:^   f. 


I 
1500  i 

266^)8 

:     I    , 


1766  08 


T.  P. 


(Philadelphia)        COPE  &  SONS. 


1867. 

Jan. 
Feb. 


Mar.  20 


Cash, 


31   Balance 


1 

'2 
3 

4 

1200 
500 
800 

1867. 

Jan. 
Mar. 

2 
25 

2500 

504 

Mdse.  ^  Invoice, 


Mdse,  ^  Invoice, 


1 

3 

2500 

2500 

504 

WILLIAM 


HAY. 


1867. 

Jan. 

5 

Feb. 

5 

Mar. 

81 

Cash, 
// 

Balance, 


1 

400 

1867. 

Jan. 

2 

i'. 

2 
4 

200 

200 

— 

800 

Mdse., 


800 


800 


CASH 


ACCOUNT. 


1867.   I 

Mar.  81 


Sundries  to  date,   ^l;g  4     6391^5 


6391  25 


1867.    i       ! 

Mar.  31   Sundries  to  date, 

//     Balance,  f. 


4291 EO 
21:00^5 


6391  25 


MERCHANDISE 


ACCOUNT. 


1867.    !       I 

Mar.  131 1  Sundries  to  date, 
n  i  Profit  &  Loss, 


4 
4 

4830 
993 

50 

1867. 

Mar. 

31 

5823 

BO 

. 

131 


Sundries  to  date, 


Balance 


6823J0    f. 


2606 
3217 


5823  50 


50 


Dr. 


ROBERT 


{m  Bowery) 


MARTIN, 


Ur. 


18C7. 

Jan. 


Feb. 


May 


23 


1  pr.  Fine  Boots, 
Repairing  2  pr.  do. 
1  pr.  Ladies'  Boots, 
Repairing  Boots, 
Pd.  order  to  J.  Reed  g; 


Bal.  bro't  down, 


6 
1 
2 

35 
45 


20 


Note  7,  p.  129,  and  6,  p.  130. 

The  above  account  remained  closed  until  Martin  paid  the 
amount  to  the  new  firm.  It  was  then  re-opened  to  re- 
cord the  payment :  this  must  always  bo  done  in  such 


1867. 

Feb. 
Mar. 


May 


23 


Our  order  to  J.  Day, 
Suspended  List,         f; 


Pd.  Duff,  Gordon  &  Co. 


25 

20 


45- 


20 


2.  If  the  business  of  the  new  firm  had  re-opened  in  these 
books,  it  would  then  have  been  necessary  to  re-open  the 
suspended  accounts  with  a  Day  Book  Entry,  making 
them  Dr.  To  Duff  «fc  Gordon :  then  credit  them  for  the 
payment. 


JAMES 


(Clerk) 


CARTER. 


1367. 

Jan. 

5 

20 

Mar. 

31  i 

Shoes  1.75,  Boots  foot- 
ed 2.75, 
2  pr.  Pumps,  @  $2, 
Cash,  53.50 

Balance,  f. 


1867. 

Mar. 

31 

1 

4 
4 

50 

4 

45 

4 

36 

50 

90 

1 

' 

3mos.  sal'ytodate,  f^; 


90 


90 


ROBERT 

(Buffalo) 

EVANS. 

1867. 

Jan. 
Mar. 

5 

10 

31 

Mdse.  "§  Invoice, 

36  yds.  coFd  Satin  1.25 

316.25 
250. 

66.25 

1 
3 

271 
45 

316 

25 
25 

1867. 

Mar. 

May 
June 

10 

31 

31 
10 

Cash  by  mail, 
Suspended  List,        f. 

3 

4 

i 

250 

66 

25 

316 

25 

May 

Bal.  bro't  down. 

66 

25 

Pd.  Duff,  Gordon  &  Co. 
// 

25 

41 

25 

QQ 

25 

66 

25 

See  Martin's  account  above,  and  Note  2,  Suspended  List,  p.  13-1. 


ROBERT 


(Albany) 


BUTLER. 


Jan.  10 


Mdse.  '^  Invoice, 


337  25 


337  25 


1867. 

Mar. 


Cash  ^  mail, 
//         // 


300 
37 


337 


ANDREW 


BELL. 


1867. 

Feb. 

15 

20 

Mar. 

10 

1  full  circle  cloak. 
Coat  and  vest  repaired, 
1  Beaver  Hat, 


1867. 

2 

45 

Mar. 

20 

ired. 

2 

50 

31 

62.50 
40. 

3 

5 

12.50 

52 

50 

= 

Our  order  to  E.  Pryor, 
Profit  &  Loss,  f. 


Considering  this  a  bad  debt,  we  close  it  into  Profit  &  Loss. 

132" 


40 
12 


52 


50 


50 


Br. 


JAMES 


1867. 

Feb. 


Ml 


Cash, 

Black  Dress  Coat, 
Pd.  order  to  W.  Pricey 
Our  order  on  K.  Mar- 
tin, 82. 
Balance,                   fol 


(Foreman) 


DAY. 


1867. 

2 

20 
25 

Feb. 

1 

28 

2 

12 
25 

Mar. 

30 

4 

68 

150 

Mdse.  wages  to  date, 
//  // 


Cr. 


2 

50 

3 

50 

4 

50 

150 

EXPENSE 


ACCOUNT. 


1867. 

Jan. 

5 

Feb. 

5 

Mar. 

30 

31 

Cash, 

n 

It     Store  Rent, 
J.  Carter,  salary,    isuo 


1867. 

1 

1 

50 

Mar. 

31 

2 

3 

20 

4 

60 
90 

154 

70 

Profit  &  Loss 


154 


154 


70 


EXCHANGE 


ACCOUNT. 


1867. 

Jan, 

5 

Cash, 

Feb. 

5 

10.50 

1867 

1 

4 

Mar. 

31 

2 

6 

50 

10 

50 

Profit  &  Loss,  fol. 


10 


10  50 


50 


1.  This  and  the  preceding  account  are  branches  of  Profit  &  Loss,  and  are  always  closed  into  it.— Note  4,  p.  24,  and  Note  3.  p. 
129.  Tlie  student  can  never  be  at  any  loss  in  conducting  them,  they  being  of  the  same  nature  as  Profit  &  Less,  and  are 
therefore  always  debited  when  you  lose,  and  credited  when  you  gain  by  them. 


EDWARD 


PRYOR. 


1867. 

Feb. 
xMar. 


2pr.Blk.Pants,@$8. 
Cash  Loan  20th  ult., 
Mdse.pd.  order  to  Wood 
Our  order  on  A.Bell  _ 


1867. 

2 

16 

Feb. 

20 

3> 

200 

6 

Mar. 

31 

40 

262 

Mdse.  "^  Invoice, 
Cash  Loan, 
Balance, 


fol. 


This  method  of  entering  loans  dispenses  with  the  Borrow  &  Loan  account. 


60 
20§ 


262 


SAMUEL 


GAYNOR. 


1867. 

Mar.  10 
20 


4  yds.  best  Blk.  Cloth, 
1    //    Cassimere, 
Paid  order  to  H.  Wal- 
lace, 91. 


40 
3 

48 
91 


iiaf. 


31 


Balance 


91 


91 


133 


Dr. 


PROFIT  &  LOSS. 


Cr. 


18«7. 

Mir. 

1 

! 
1 

31 

Cash  counterfeit  money 
Andrew  Bell,           fol. 
Expense  acct., 
Exchange  acct., 
Suspended  acct.,    283.95 
P.  Duff's  net  gain, 
"VV.  Gordon  // 

4 
2 
3 

4 

1 

20 

12 

154 

10 

86 

443 

266 

50 
70 
50 
25 

47 
08 

1867. 

Mar. 

31 

Mdse.,                     fol.^ 

993.50      y 
283.9^/ 

Gain,       W.55 

1 

993 

50 

993 

50 

993 

50 

Read  Note  4,  p.  130. 
1.  The  mtirginal  pencil  figures  on  each  side  show  how  the  net  gain  is  found :  Then, 


Duff's  Capital  was 
Gordon's 


2500. 
1600. 


4000  :  709.55 
Then,  4000  :  709.55 


2500  :  443.47,  Duff's  share  of  the  gain. 
1500  :  266.08,  Gordon's  do.  do. 


2.  "^hen  each  partner's  share  of  the  gain,  thus  found,  is  placed  to  the  debit  of  this  account,  it  must  exactly  close  it. 


BALANCE 


ACCOUNT. 


186T. 

Mar. 


31! 


Cash, 
Mdse., 
E.  Pryor, 
S.  G-aynor, 


1867. 

fol. 

1 

2100 

05 

Mar. 

31 

1 

3217 

50 

3 

2 

91 

6U0.55 

5410 

55 

T.  P.  Cope  &  Sons,  fol. 
Wm.  Hay, 
James  Carter, 
James  Day,  gos.so 

P.  Duff,  for  net  capital, 
W.Gordon,      // 


1 

604 

200 

2 

36 

3 

68 

1 

2884 

1 

1717 

5410 

' 

50 

47 
58 

55 


See  Balance  accounts,  pp.  17  and  35. 

1,  This  account  is  made  up  from  the  Ledger,  in  all  respects  as  in  individual  business;  and  the  difference  between  the  amount 

of  the  effects,  and  the  debits  owing  by  the  firm,  is  the  net  joint  capital.  The  proportion  of  that  capital  which  belongs 
to  each  partner,  can  only  be  known  from  his  account.  When  each  partner's  balance  is  transferred,  it  must,  as  you  see 
above,  close  this  account :  neithet  more  nor  less. 

2.  If  any  of  the  partners  overdraw  their  capital,  then,  of  course,  the  balance  they  owe  the  firm,  like  a  balance  due  from  any 

other  individual,  is  part  of  the  effects  and  comes  to  the  Dr.  side  of  this  account. 


; 

SUSPENDED 

LIST. 

1867. 

M^r. 

31 

Robert  Martin,        fol. 
Kobert  Evans, 

2 

20 

25 

1867. 

Mar. 

31 

Profit  &  Loss,         fol. 

4 

86 

25 

86 

25 

86 

25 

; 

1 

See  Note  7,  p.  129,  and  Note  6,  p.  128. 

1.  This  account,  as  you  perceive  above,  is  closed  into  Profit  k  Loss.    It  will  be  seen  by  these  accounts— p.  132— that  when  a 

payment  is  received  upon  it,  the  account  must  be  re-opened  by  bringing  the  suspended  balance  down. 

2.  I  wish  the  learner  to  observe  that  when  the  business  is  transferred  to  new  books,  as  in  this  case,  there  is  no  occasion  for 

closing  the  suspended  accounts.  I'ind  the  balances  as  directed— Note  3,  p.  113 — and  transfer  them  to  the  list  and  leave 
the  accounts  standing  open  until  paid.  But  I  have  closed  them,  because,  by  so  doing,  it  is  easier  to  convey  the  idea  of 
what  was  done  with  the  balances,  and  more  particularly  when  and  how  they  were  settled  after  the  Ledger  was  closed, 
and  all  other  accounts  transferred. 

3.  After  what  has  been  stated  in  Note  3,  p.  113,  it  will  be  seen  that  it  is  never  necessary  to  close  an  account  for  the  mere  pur- 

pose of  finding  its  balance  to  make  up  any  sheet  or  list. 


134 


PROOF  SHEET,  March  31,  1867. 


Drs. 


Crs. 


P.  Duff 

W.  Gordon    . 

T.  P.  Cope  &  Sons 

W.  Hay 

Cash 
Mdse.    . 

Kobert  Martin    . 
Jas.  Carter    . 
K.  Evans   . 
Robt.  Butler 
Andrew  Bell 
James  Day    . 
Expense  Account 
Exchange  Account 
Edward  Pry  or 
Samuel  Gaynor 
Profit  &  Loss 


5 

.     fol. 

1 

• 

? 

t 

. 

3 

! 

^ 

4 

i 

1.  The  above  Proof  or  Trial  sheet  must  embrace  all  amounts  that  have  been  posted  since 
the  last  balance — closed  accounts  as  well  as  open  ones.  See  Cope  &  Sons'  account  above. 
By  this  means  we  have  not  only  proof  by  equal  debits  and  credits,  but  we  have  the  sum  total 
of  the  postings  to  the  Ledger  agreeing  in  amount  with  the  sum  total  of  the  Day-Book  transr 
actions.  Compare  the  above  with  the  Day-Book  footings,  p.  128.  This  is  the  strongest  and 
most  conclusive  proof  that  our  Day-Book  is  completely  posted.  If  one  dollar  or  one  cent  be 
omitted,  it  is  evident  that  this  Trial  must  fall  just  that  amount  short  of  the  Day-Book  foot- 
ing. On  the  contrary,  if  any  entry  by  any  means  gets  twice  posted,  the  Trial  will  certainly 
show  it  by  footing  up  just  the  amount  of  the  error  more  than  the  Day-Book. 

2.  In  our  next  set  our  students  will  find  an  illustration  of  the  monthly  trial,  also  a  full 
explanation  of  the  mode  of  detecting  and  correcting  errors. 

3.  If  the  business  had  continued  in  this  Ledger,  you  must  recollect,  that  in  re-opening, 
the  amounts  composing  the  old  Balance  account  do  not  pass  through  the  Day-Book,  for  this 
reason,  when  you  take  your  next  trial,  it  will  foot  just  the  amount  of  this  Balance  account 
more  thah  the  Day-Book.  Therefore  at  each  succeeding  trial  after  the  first,  until  the  re- 
opening entries  are  passed  again  through  the  Day-Book,  deduct  the  amount  of  the  previous 
Balance  from  the  footing  of  the  trial  sheet,  and  the  remainder  must  agree  with  the  footing 
of  the  Day-Book  as  above. 


135 


SET  II.— PART  11. 


Opening  with  a  transfer  of  the  contents  of  the  last  Ledger. — Exjiibiting 

ALSO    the    formation    OF   A    NeW    FiRM    BY   THE    ADMISSION    OF  A  NEW   PARTNER. 

Illustrating  the   use  of  all   the  Auxiliaries  in    the   new  process    for 
detecting  errors  and 

PROVING   THE   LEDGER. 

1.  We  have  shown  in  the  last  set  our  method  of  proving  the  Books,  applied  to  the  Day- 
Book  and  Ledger  only.  That  set,  as  already  stated,  is  only  intended  for  a  retail  business. 
As  the  business  extends,  the  Auxiliaries  and  the  Journal  become  necessary.  I  may  however 
remark,  that  the  Journal  would  seldom  be  required  in  any  ordinary  business,  if  all  persons 
about  the  establishment  were  instructed  in  keeping  a  Day-Book  upon  this  principle.  Where 
this  is  not  done,  a  common  Day-Book  must.be  kept,  from  whence  the  book-keeper  journal- 
izes the  entries. 

2.  Our  purpose  is  now  to  show,  that  our  method  of  detecting  errors  and  proving  the  books, 
is  applicable  with  the  use  of  as  few  or  as  many  of  the  Auxiliaries  as  the  book-keeper  may 
consider  it  necessary  to  keep. 

3.  By  a  slight  alteration  in  th«  form  of  the  Invoice  Book,  and  adding  up  and  forwarding 
the  amounts  from  page  to  page,  it  will  be  seen  that  this  book,  the  merchandise  debit  column 
in  the  Journal,  and  the  debit  side  of  the  merchandise  account  in  the  Ledger,  will  correct 
each  other;  and  by  attending  to  the  footings  of  this  book  and  the  Journal,  an  error  cannot 
pass  unobserved  for  a  single  page.  It  is  to  be  observed,  however,  that  all  entries  affecting 
the  debit  side  of  the  merchandise  account,  must  originate  upon  this  book. 

■  4.  The  next  question  that  presents  itself  is,  how  are  invoices  of  consignments  to  be  dis- 
posed of?  We  exemplify  two  entries  of  this  kind  :  one  on  April  30,  p.  137,  and  one  on 
June  4,  p.  138.  By  these  entries  it  will  be  seen  that  all  such  invoices,  and  invoices  on  ac- 
count of  ourselves  and  others  in  company,  can  be  entered  upon  this  book,  without  disturbing 
the  entries  of  our  own  invoices,  the  amounts  of  which  are  extended  into  the  right-hand 
column  to  be  footed  and  forwarded  as  before  directed. 

5.  By  a  similar  arrangement  it  will  be  seen  that  we  have  made  our  Sales  Book,  the  Mer- 
chandise credit  column  in  the  Journal,  and  the  credit  side  of  the  merchandise  acpount  in 
the  Ledger,  agree  with  each  other. 

By  the  common  mode  of  keeping  the  Cash  Book,  its  balance  and  that  of  the  cash  account 
in  the  Ledger  must  agree,  otherwise  there  must  be  error  in  one  or  the  other — perhaps  in 
both.  This,  however,  furnishes  no  clue  to  where  the  error  exists.  From  our  arrangement 
of  this  Book  in  connection  with  the  cash  columns  in  the  Journal,  it  will  be  seen  that  you 
can  always  in  a  few  minutes  point  out  the  very  page  and  generally  the  side  of  the  Book  upon 
which  the  error  exists. 

6.  The  Bill  Books  both  control  their  representatives  in  the  Ledger  upon  the  principles 
explained  in  Note  4,  p.  48.  The  Commission  Sales  Book  governs  the  Consignment  Sales 
acct.  in  the  Ledger  in  a  similar  manner.  And  the  same  harmony  is  maintained  between  the 
Check  Book  and  the  Bank  Account. 

7.  The  following  Invoice  Book  opens  with  an  inventory  of  the  Merchandise  brought  into 
the  new  firm  by  the  old  partners,  as  will  be  seen  by  the  Journal ;  this  Merchandise  is  carried 
to  their  credit.     The  Day-Book  and  Cash-Book  show  their  other  effects. 


136 


TNVENTOEY  of  Merchandise  in  Store  belonging  to  DUPP  &  GOEDON,  April  1st,  1867.  1 


D.B.I. ! 


D.B.I 

D.  G. 

&Co. 


D  B. 


D.B.I. 


No.  4. 
'/  6. 
//  8. 
'/  10. 


D  B.2. 


6  pieces,  112?,  115?,  116, 112, 118, 117  =  691  yds.  Ingrain 
Carpeting         .  .  .  .  @  $1. 

BIk.  Broadcloth,  20?,  21!,  20?,  19?  =  82  yds.    10. 
Blk.  Gros  de  Naples,  60,  60  =  120  yds.  1. 

Blk.  Bombazine  ....         15. 

Colored  Florence      .  1510  yds.         .  30  cts. 

Blk.  Crape  de  Paris     ....  5. 

Black  Satin  Vestings      .     120  yds.  .      2. 

Green  Broad  Cloth      .  41  yds.      .  6. 

Prints 3. 

Furniture           .         .         .         .         •           3.25 
do 

—       10.  


4 

// 

2 

If 

12 

H 

20 

II 

20 

II 

4 

II 

2 

II 

00 

li 

20 

II 

1 

II 

Boston,  April  6th,  1867. 
Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  Wm.  Hay. 
500  ps.  Merrimac  Prints        .         .         .  .         @  $3. 

200    II   Furniture      .         .         .         .         .         .  4. 

80    //   Rolled  Jaconets 1.25 

60   //       //  // 1.50 

Packing  cases     ...... 

Paid  Cash,  Freight,  and  Cartage 


New  York,  April  10th,  1867. 
Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  A.  Stuart  &  Co. 
1  ps.  Super  Wool  Black  Cloth  .         .         22?  @  $8. 
1    //   Double  Mill'd  Cassimere        .         .         .    24         1.50 
—    -^      20.  = 


Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  A.  Stuart  &  Co. 
1  ps.,  60  yds.,  Blk.  Gros  de  Naples        .         .         @  75  cts. 
1    II  60     //       II      Bombazine    .         -         .         .         50 


Ingrain 
do. 


@$1. 
1.25 
.     1.50 
2. 


Invoice  of  40  pieces  Brussels  Carpeting,  consigned  to  Duff, 
Gordon  &  Co.,  for  sale  by  order  and  for  account  of  A. 
Stuart  &  Co. 

10  ps.,  360  yds.       . 

10   //    360   //       .         .         . 

10   //    360   //   . 

10   //    360   II       .         .         . 
New  York,  April  30th,  1867. 

Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  Edward  Pryor. 

4  yds.  Black  Silk  Velvet @  $4. 

G    //     Fine  Black  Broadcloth         .         .         .         @  $8. 

Forwarded 


691 
820 
120 
180 
453 
100 
240 
246 
300 
65 

9 


1500 

800 

100 

90 

4 


180 
36 


50 


40 


45 
30 


360 
450 
540 

720 


2070 


16 

48 


Mdse. 
Dr. 


3217 


2494 
11 


216 


75 


50 


_64 

6078 


50 


May  1, 1867. 


D.B.2. 


D.B.3. 


F.  H. 


Bro't  forward 
Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  Samuel  Gaynor. 
4  ps.,  240  yds.,  Black  Gros  de  Naples      .         .         @  $1. 
1  ps.  Green  Crape  ....... 

New  York,  May  1st,  1867. 
===-=---==       23.  


Philadelphia,  May  lOtli,  1867. 
Messrs.  Duff,  Gordon  &  Co. 

Bo't  of  T.  P.  Cope  &  Sons. 
j  500  bbls.  Superfine  Flour        .         .         .         .         @  S4. 
50    //     Herring  .....  6. 

,,.=:==^  June  4,  - 


D.B.4. 


D.B.4. 


Invoice  of  Broadcloths,  consigned  to  Duff,  Gordon  &  Co., 
for  sale  by  order  and  for  account  of  Francis  Hardman 

6  ps.  Super  Blue,  19?,  20'f,  21, 19,  18,  22  =  120  yds.,  @  $8. 

7  //  Wool  Black,  17,  23, 18, 22, 19, 21, 20  =  140    //    @    9. 

Packing  case       ...... 

Boston,  June  1st,  1867. 


Taken  to  our  account  @  3  months,  3  pieces  A.  Stuart  &  Co.'s 
Carpeting,  viz.  2  pieces  72  yds.  @  ^1.50,  and  1  piece  36 
yds.  @$2 


Messrs.  Duff,  Gordon  &  Co. 


i  12  Cashmere  Shawls 
12 


Bo't  of  S.  Henry  &  Co'. 
.        .         .        .        @  $50. 

//  30. 

//  10. 

Lamb's  Wool  Plaid  do.       .         .  3. 

Bec'd  Payment, 
New  York,  June  4th,  1867.  S.  Henry  &  Co. 

==r.  10.  - 


II 

112         II 
il2        // 


D.B.5. 


D.B.5. 


D.B.5. 


D.B.5. 


Duff,  Gordon  &  Co. 

Bo't  of  Wm.  Hay. 
24  pr.  Super  Bath  Blankets 


Duff,  Gordon  &  Co. 

Bo't  of  Thomas  Freeman. 
12  pr.  Super  10-4  Rose  Blankets 
===========       20.       == 


Duff,  Gordon  &  Co. 

Bo't  of  James  Haven. 
14  pieces  Satin  Ribbon 
If 


@$2. 


Duff,  Gordon  &  Co. 

Bo't  of  A.  Stuart  &  Co. 
500  ps.  Merrimac  Prints  .         .         .         .         @  $2. 

Rec'd  payment  By  note  @  3  months, 
New  York,  June  20th,  1867.  A.  Stuart  &  Co. 

June  30,  Total  purchases  to  date     . 


138 


240 
25 


2000 
300 


960 

1260 

2 


2222 


600 

360 

120 

36 


6078 


265 


2300 


50 


18U 


1]16 


168 


28 

1000 
11207 


50 


Inventory  of  Mdse.  on  hand  June  30,  1867. 


4  ps.,  320  yds.,  Ingrain  Carpeting 
700   II     Merrimac  Prints 
400  barrels  S.  F.  Flour       . 
300  ps.  Furniture  Prints 
400   //  //  //         .         . 

10  CashiDere  Shawls 
^  II  II  .         . 

50  barrels  Herring 
10  ps.  200  yds.,  Broadclotb       . 
4   //    230     //     Blk.  Gros  de  Naples 
6   //    360     //      Fancy         // 
4   //      82     //      Broadclotli  . 
6   //    Crape  de  Paris 


Enter'd  Ledger  2, 


CONCLUDING  REMARKS. 

1.  It  is  not  necessary  to  pass  the  Inventory  of  goods  on  hand  through  the  books,  unless  ai 
the  transfer  to  new  books,  although  there  are  no  objections  to  doing  so  in  the  common  mode 
of  keeping  books ;  but  upon  this  plan,  for  the  reasons  named  in  note  3,  p.  135,  it  would  cause 
some  trouble  with  the  next  trial  sheet.  ' 

2.  In  a  business  where  the  invoices  are  so  long,  that  copying  them  entire  becomes  incon- 
venient, an  abstract  of  them  will  be  found  sufficient  for  this  book;  but  we  must  again  remind 
our  student  that  he  must  see  this  book  made  complete.  Every  entry  affecting  the  debit  side 
of  his  merchandise  account  must  originate  here ;  but  when  this  is  done,  this  book  becomes 
a  direct  and  perfect  check  upon  the  Dr.  side  of  the  merchandise  account  in  the  Ledger. 
Nothing  so  completely  establishes  the  correctness  of  this  part  of  the  book-keeper's  work  as 
the  agreement  of  this  book  with  its  representative  in  the  Ledger ;  and  this  is  done  on  any 
day  or  at  any  hour  you  choose  to  compare  its  footing  with  those  of  the  Journal :  you  are  not 
obliged  to  wait  until  the  time  of  making  out  the  trial  sheet. — Compare  the  footing  of  the  last 
pag^  with  that  of  the  debit  merchandise  column  on  the  Journal,  p.  161. 

3.  On  the  other  hand,  as  the  Invoice  Book  is  usually  kept,  it  affords  no  protection  what- 
ever against  error  in  the  Ledger.  It  is,  indeed,  of  no  practical  use,  except  as  a  memorandum 
of  the  prices  of  the  goods. 

4.  When  this  book  is  kept  in  this  form,  the  work  of  posting  can  be  shortened  by  another 
process.  Post  all  the  personal  accounts  direct  from  here  to  the  Ledger,  post  marking  them 
as  usual ;  and  at  last  post  the  merchandise  debit  from  the  end  of  the  month  or  the  end  of 
the  quarter,  as  may  be  decided  upon,  inserting  the  post  mark  on  the  same  line  with  the  sum. 
"We  shall  show  hereafter — p.  142 — that  the  Sales  Book  can  be  posted  in  the  same  way,  and 
thus  do  away  with  the  merchandise  columns  in  the  Journal. 

5.  This  is  perhaps  the  shortest  and  simplest  of  all  methods  of  posting;  but  there  is  not 
the  same  security  against  errors,  nor  the  same  facility  in  detecting  them,  that  we  have  in  the 
other  arrangement :  besides,  there  are  some  kinds  of  business  to  which  it  will  not  be  appli- 
cable, whereas  the  arrangement  we  have  given  is  applicable  to  any  kind  of  business  whatever. 


139 


THE  SALES  BOOK. 

The  object  for  keeping  this  book  is  to  avoid  entering  long  invoices  of  sales  upon  the  Day 
Book.  It  is  generally  ruled  with  one  set  of  money  columns ;  but  for  our  purpose  two  sets 
are  required.  By  means  of  these  two  sets  of  columns,  it  will  be  seen  that  all  entries,  usually 
made  on  a  Sales  Book,  can  be  made  upon  this,  in  the  common  form,  and  with  very  little  trouble, 
Ail  amounts  affecting  the  Merchandise  account  are  separated,  footed,  and  forwarded  like  the 
credit  Merchandise  column  on  the  Journal ;  while  all  the  particulars  of  the  invoice  of  the 
sale  are  stated  and  exhibited  in  the  inner  column,  as  usual.  It  is  so  simple  that  any  further 
explanation  seems  unnecessary.  The  first  entry  on  April  30,  and  the  last  one  on  May  23, 
exemplify  the  management  of  entries  when  only  a  part  of  the  amount  is  to  go  to  the  credit 
of  merchandise. 


NEW  YORK,  Saturday,  April  10,  1867. 


I  Sold  Robert  Butler  (Buffalo),®  3  mos., 

50  pieces  Merrimac  Prints $4. 

D.B.I.  I     10       //     Boiled  Jaconets  ....         2. 

j       1       //     22?  Fine  Wool  Black  Broadcloth    .         .  10. 
30       //     Furniture  Prints        ....         5. 


Packing  case 


D.B.I. 


D.B.I. 


D.B.2. 


D.B.2. 


D.B.2. 


Edward  Pryor  to  Md^e.  for  2  yds.  fine  Brown  Cloth 

II  


Sold  Bichard  Howe  for  Cash 
70  pieces  Prints        .... 
5       //     Furniture       .... 

Packing  box      .         .         .         . 

---=--■=-==-==-=----=  Tues.  20.  — 

^  Paid  E.  Pryor's  order  to  J.  Burk  in  Mdse. 


$4. 
5. 


Sold  Samuel  Gray  nor  on  his  order  favor  of  C.  Rhodes, 
1  piece  20  yds.  Super  Black  Cloth         .         .     @  11. 
1     //      118  yds.  Ingrain  Carpet         .         .  1.50 


D.B.2. 


Sold  James  Camp  for  Cash, 

2  pieces  19.^  20.^=40  yds.  Super  Blue  Broadcloth  @  11. 

1     //      60  yds.  Black  Gros  de  Nap.         .         .  1. 

10  pair  Bath  Blankets 12. 

60  pieces  English  Prints         ....  5. 


5  per  cent,  for  Cash 

Friday  30 


Sold  Joel  Post  for  Cash 
24  yds.  Purple  Silk  Velvet      . 
30     //    Crimson  and  Gold  Fringe 
4  ps.  144  yds.  A.  Stewart  &  Co.'s  Carpets   2.50 

Merchandise  forward  .... 


4.50,  $108. 
1  30. 


1.  There  is  no  necessity  to  specify  the  articles  you  have  sold  in  payment  for  this 

order.    Your  possession  of  it  is  evidence  of  your  having  paid  it. 

2.  When  you  furnish  merchandise  upon  an  open  order — that  is,  an  order  permitting 

the  bearer  to  draw  any  amount  he  desires — it  is  necessary  to  specify  what  you 
sell  upon  it,  and  to  furnish  the  drawer  of  the  order  with  a  bill. 


200 

20 

225 

150 

1 

50 

596 
16 

280 

25 

75 

305 
45 

220 

177 

397 

440 

60 

120 

300 

920 

46 

874 

138 

138 

3C0 

498 

2372 

1 

- 

50 


25 


140 


Saturday,  May  1,  1867. 


Bro't  forward 


Sold  P.  Puff  on  account, 
4  yds.  best  Black  Clotli 
1  yd.  Black  Silk  Velvet 


Sold  C.  Spencer  on  his  note  @  20  days, 
40  ps.  Merrimac  Prints  . 
10   //    Furniture 
1    //    20?  Black  Cloth   . 


@$3. 
//  4. 
//      6. 


Packing  case 


Sold  W.  Gordon  on  account, 

16  yds.  Fig'd  Gros  de  Naples . 
1  Silk  Cravat     . 


@  $1.25 


Sold  James  Carter  on  account, 
1  pr.  Black  Silk  Gloves 
12  yds.  Linen    . 


@  75c. 


Sold  Robert  Banks  on  account, 

1  yd.  Fancy  Velvet,  $1.50.     2?  Fancy  Cassimere,  @  $2. 


Received  Cash  for  sales  of  Mdse.  this  day 

======================    Monday,  23.   = 


Invoice  of  Mdse.  shipped  by  the  Brig  "Tribune,"  Truck, 
Master,  by  order  and  for  account  and  risk  of  Messrs. 
T.  P.  Cope  &  Sons,  Philadelphia. 

40  bbls.  No.  1  Mackerel       .         .         .         .        @  $6. 
300  boxes  Smoked  Herring         .  .         .  1. 


CHARGES. 


Commission  5  per  cent,  on  $540 
Cash  paid  for  cooperage,  cartage,  &c. 

E.  E.  New  York,  May  23,  1867. 
-  —    Tuesday,  31. 


S27. 
12. 


Sold  William  Evans,  payable  in  10  days, 
4  ps.  Furniture  Prints 
2   //  //  //  .         . 


@$3. 
//     4. 


Sold  J.  Reed,  payable  next  week, 
1  ps.  Super  Black  Cloth     . 

ff 


22!,' @  $8. 


Sold  Joel  Post,  payable  in  10  days, 

2  yds.  Super  Blue  Broadcloth 
// 


.    @$9. 


Received  Cash  for  sales  23d,  $180.     31st,  $86  . 
— ,  //  


Sold  R.  Butler  wrappers  for  a  bale  A.  Stuart  &  Co.'s  Carpet 


Merchandise  forwarded 


141 


2372 

82 

1 

5 

37 

120 

40 

123 

1 

50 

284 

20 

1 

50 

21 

1 

25 

9 

10 
6 

100 

240 

300 

540 

540 

39 

579 

12 

8 

20 

182 

18 

2G6 

1 

3919 

Saturday,  June  4,  1867. 


D.B.4. 

D.  B.  4. 
D.  B.  4. 

D.  B.  4. 

D.  B.  5. 
D.B.  5. 

D.  B.  5. 


Bro't  forward 
Sold  James  Beed  on  account, 

1  ps.,  36  yds.,  Brussels  Carpet    . 
1  Silk  Shawl  .... 


.     @$2.25 


Sold  Wm.  Hay  on  account  1  Cashmere  Shawl    . 


!  Sold  Robert  Parker,  payable  1st  July- 
1  Cashmere  Shawl 


Sold  G-eorge  Draper,  on  his  note, 
6  Cashmere  Shawls     . 
6         //  // 

6  Silk  // 


.  @$55. 

If     30. 

.    //     20. 


10. 


Sold  K.  Banks  on  account, 

6  pr.  10-4  Super  Bath  Blankets 
6  //    10-4     II      Bose        n 


.  @$10. 
//       8. 


Sold  Edward  Pryor  on  account, 

3  pr.  10-4  Super  Bath  Blankets  . 

3   II    10-4     //       Bose        // 

1  ps.,  21?  yds.,  Blk.  Broadcloth  . 

-^ 20. 


II       6. 


Sold  William  Garden  for  Cash  deposited, 
500  ps.  Merrimac  Prints 

Total  sales  to  date 


$2.50 


81 
15 

3919 
96 
60 

60 

630 

108 

183 
1250  1 

330 

i  180 
1  120 

i   60 
48 

1 

!   30 

24 

1  129 

il 

6306  1 

.  COxNCLUDINO  REMARKS. 

1.  Compare  the  above  footing  with  that  of  the  credit  merchandise  column  in  the  Journal, 
p.  161,  and  every  person  at  all  acquainted  with  the  subject  must  be  convinced  that  there 
cannot  be  a  more  conclusive  evidence  of  the  correctness  of  this  part  of  the  work. 

2.  When  the  Sales  Book  is  kept  in  this  form  it  admits  of  being  posted,  as  we  have 
directed  at  the  Invoice  Book,  note  4,  p.  139;  post  the  personal  accounts  as  usual,  and  the 
merchandise  in  one  sum  from  the  foot  of  the  account  above. 

3.  If  no  Commission  Sales  Book  is  kept,  the  sales  on  consignment  can  be  short  extended 
as  in  first  entry  Apr.  30,  p.  140. 

4.  It  is  scarcely  necessary  to  observe  that  the  way  the  Sales  Book  is  generally  kept,  it 
afibrds  no  means  whatever  of  proving  its  contents  to  be  all  transferred  or  posted;  and  there 
is  the  strongest  reason  to  believe  that  errors,  deeply  afiecting  the  interest  of  the  proprietors, 
frequently  pass  for  ever  undiscovered  in  this  book. 

5.  A  few  years  ago  a  Western  merchant  called  at  the  office  of  an  extensive  wholesale 
deailer  in  Philadelphia  to  pay  his  account.  On  referring  to  the  Ledger  it  was  found  bal- 
anced. Upon  the  merchant  representing  that  he  had  a  subsequent  invoice  from  them,  the 
Sales  Book  was  searched,  and  an  invoice  of  about  $1300  found  marked  off  that  book  as  if 
journalized,  but  no  entry  appeared  upon  the  Journal.  Now,  in  this  case,  it  is  evident  that 
the  discovery  of  this  omission  was  purely  accidental,  and  it  is  equally  certain,  that,  by  our 
plan,  it  would  have  been  undoubtedly  discovered  before  we  had  journalized  another  page. 

142 


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143 


1 

J)P. 

C^SH 

1867. 

Apr, 

1 

Sundries 

Balance  '^  old  Ledger,  fol.  4. 

2100 

05 

P.  Duff  (S.  A.) 

Rec'd  balance  of  his  capital 

115 

53 

P.  Duff 

Rec'd  on  acct. 

500 

W.  Gordon  (S.  A/ 

)  Rec'd  balance  due  on  his  capital 

1282 

42 

J.  Carter  (S.  A.) 

Rec'd  on  acct  of  his  capital 

2000 

10 

Mercliandise 
K.  Butler 

Rec'd  from  Howe 
Rec'd  on  acct. 

305 
100 

7^ 

20 

Merchandise 

Rec'd  of  Camp 

874 

30 

Commission  Sales 

Rec'd  for  Stuart's  carpets 

360 

Merchandise 

Rec'd  of  J.  Post                             ,^^ 

^ 48.15 

138 

Balance  in  hand  bro't  down 

7775 

75 

15 

7775 

75 

48 

May- 

1 

S.  Gay  nor 
Merchandise 

Rec'd  on  acct. 

Rec'd  for  sales  this  day 

50 
160 

23 

B.  Receivable 
Merchandise 
Duff  &  Gordon 

Rec'd  for  Spencer's  Note 

Rec'd  for  sales  this  day 

Rec'd  Martin's  acct.  Ledger  A.  p.  2 

284 

180 

20 

50 

81 

Merchandise 
S.  Gavnor 

Rec'd  for  Sales  this  day 
Rec'd  on  acct. 

86 
20 

Duff  &  Gordon 

Rec'd  of  R.  Evans,  Ledger  A.  p.  2  g^^s 

^^^^-^-"^             9.65 

25 

825 

50 

Balance  in  hand  bro't  down 

.873 

65 

9 

65 

June 

4 

Joel  Post 
James  Reed 
Commission  Sales 

Rec'd  in  full 

Rec'd  on  acct. 

Rec'd  of  Jennings  for  cloths 

18 

100 

1200 

10 

R.  Butler 
Commission  Sales 

Rec'd  ^  mail 

Rec'd  of  McKenzie  for  cloths 

100 
1540 

Duff  &  Gordon 

,  Rec'd  of  R.  Evans  in  full 

41 

25 

20 

Profit  &  Loss 

Rec'd  gain  on  auction  purchase     315^90 

2939! 

219.90 

150 

3149 

2{) 

Total  amt.  received  to  date 

11750 

50 

1.  In  business  the  Cash  Book  ought  generally  to  be  balanced  every  night;  never  at  longer 
periods  than  a  week.  For  obvious  reasons,  we  could  not,  in  a  work  like  this,  introduce  a 
sufficient  number  of  entries  to  do  so :  we  have,  therefore,  only  balanced  it  monthly. 

2.  The  manner  of  making  the  entries  upon  this  book,  is  in  all  respects  the  same  as  note 
9.  p.  53.  The  right  hand  column  is  used  for  carrying  forward  the  sums  total  of  all  money 
received  and  paid,  thereby  enabling  us  to  keep  a  constant  check  upon  the  Journal.— Com- 
pare the  footings  above,  June  30,  with  those  of  the  Journal,  p.  161.  And  it  will  facilitate 
the  detection  of  error  to  balance  this  book  when  the  Journal  is  footed  at  the  bottom  of  any 
page,  where  you  can  compare  the  cash  columns  together. 

3.  Observe,  this  Cash  Book  is  always  balanced  in  the  inner  columns,  until  the  period  of 

144 


A.CCOUNT. 

Cr. 

1 

1867. 

Apr. 

1 

City  Bank 
Store  Expenses 
James  Day 

Paid  in  deposit 
Pd.  for  fuel 
Pd.  him  on  acct. 

5800 

10 

Mdse. 
R.  Banks 
P.Dufif 

Pd,  freight  of  W.  Hay's  Invoice 
Pd.  him  on  acct.  of  store  expenses 
Pd.  him  on  acct. 

11 

20 
30 

60 

20 

B.  Receivable 

Pd.  R.  Parker  net  proceeds  of  note 

979 

50 

30 

Commission  Sales 

P.  Duff 
W.  Gordon 
James  Carter 

Pd.  cartage,  &c.,  on  Stuart's  Carpets 
Pd.  freight  on               »                n 
Pd.  him  on  acct. 
Pd.  him 
Pd.  him 

1 
24 

60 
25 
15 

50 

City  Bank 

Pd.  in  deposit 

750 

7727 

00 

1 

Balance  in  hand  carried  down 
Pd.  him  on  acct. 

48 

15 

7775 

75 

IMay 

R.  Banks 

3C 

Expense  acct. 

Pd.  a  quarter's  rent 

60 

James  Day 

Pd.  him  on  acct. 

12 

W.  Gordon 

//         // 

10 

P.  DuiF 

//         // 

23 

T.  P.  Cope  &  Sons 
James  Day 
W.  Gordon 

Pd.  Charges  ^  "  Tribune" 

Pd.  him  ten  dollars,  James  Day^ 

Pd.  him  on  acct. 

12 
10 
40 

31 

Profit  &  Loss 
E.  Pryor 
R.  Banks 
W.  Gordon 

For  counterfeit  money 
Pd.  him  on  loan 
Pd.  him  on  acct. 
//         // 

20 

200 

1( 

City  Bank 

Pd.  in  deposit 

45( 

864 

4 

James  Day 

Balance  in  hand  carried  down 
Pd.  him  on  acct 

9 

65 

87c 

65 

June 

I 

Commission  Sales 

Duty,  &c.,  on  Hardman's  goods 

Ui 

City  Bank 

In  deposit 

10( 

10 

//         // 
Commission  Sales 
James  Day 

Pd.  F.  Hardman  in  full,  net  proceeds 
In  full 

lot 

'  185^ 
Vc 

20 

R.  Banks 

On  acct. 

9( 

James  Haven 

In  full                                              =^3«- 

Total  payments  to  date 
Balance  in  hand  carried  down 

2i 

2931 

1153( 

~60 

• 

219 

90 

1175( 

50 

posting  the  Cash  from  the  Journal;  it  is  then  closed  in  the  outer  column ;  but  the  balance 
is  brought  down  or  forward  in  the  inner  column.  The  balance  brought  down  must  not  be 
extended  as  money  received  again.     This  was  done  before  the  last  balance.     It  must,  how- 


ever, be  added  in  in  striking;  the  balance. 


4.  As  in  the  Ledger,  we  have  dropped  the  useless  appendages  of  to  and  by  in  this  booL 

5.  By  having  a  folio  column  next  the  date  or  the  money  column  the  entries  may  all  be 
posted  direct  from  this  book  to  the  Ledger,  and  the  sum  total  of  money  received  and  paid  is 
posted  in  one  sum  from  the  bottom,  as  from  the  Journal. 


*  Day's  signature — See  Note  7,  page  ' 

145 


CHECK  BOOK. 


1.  In  this  form  we  follow  our  favorite  theory  of  making  this  book  prove  the  correctness 
of  its  representative  in  the  Ledger.  Our  column  of  deposits,  and  that  of  checks,  is  pre- 
served unbroken,  and  carried  forward  from  page  to  page,  corresponding  with  the  debit  and 
credit  side  of  the  Bank  account  in  the  Ledger — compare  and  see  p.  168 — until  we  get  our 
Bank  pass-book  balanced ;  then  we  balance  both  our  Check  Book  and  Bank  account  in  the 
Ledger,  bringing  the  balances  down  as  usual.  The  detection  of  errors  in  this  form  is  so 
simple,  and  so  speedy,  that  I  cannot  think  it  necessary  to  offer  any  directions. 

2.  I  must  insist,  however,  upon  your  drawing  and  numbering  all  your  checks  upon  your 
own  book.     Any  deviation  from  this  practice  will,  sooner  or  later,  give  trouble. 


Date. 


1867, 

Apr. 
May 


7041. 
2703.65 


Bro't 
down 
May 

June 


7329.30 
3051.20 


31 


10 


20 


j800 

750 

400 

91 


r041 


Bro't 
down 


Depo- 
sit. 


^37 
450 
400 
200 
100 
491 
100 

1250 


7329 


4278 


35 


95 


Date. 


Apr.  20 


May 


May 


23 


June 


31 


To  WHOM 
PAID. 


for  2  notes 


W.  Hay     . 

2703.65 

Bal. 


Cope  <fc  Son 

W.  Hay 

Stuart's  n'e 

.  Henry 
Cope  &  Son 

8051.20 

Bal. 


703  65 


2000 

4337 


ro4i 


35 


500 

200 

291 
1060 
1000 
4278 
7329 


20 


No.  1.  New  York,  Apr.  20,  1867. 

The  Cashier  op  the  City  Bank,  New 
York,  pay  to  myself,  or  bearer,  Seven  Hun- 
dred and  three  Dollars  yuq. 

$703.3-%V  P.  Duff. 


No.  .  New  York,  ,  186  . 

The  Cashier  of  the  City  Bank^  New  York, 
pay  to  or  bearer  Dollars  j-q-^j. 

^         TTTT 


3.  When  a  deposit  is  made  it  must  be  entered  in  your  pass-book,  at  the  time  it  is  made; 
all  writing  in  this  book  must  be  done  by  the  bank  officers.  The  New  York  city  banks  col- 
lect notes  and  bills  in  the  city,  free  of  charge ;  but,  if  protested  for  non-payment,  the  owner 
must  pay  the  expanse  of  it. 

4.  Three  days'  grace  are  allowed  upon  all  notes,  for  which  discount  is  also  taken  :  thus, 
a  note  having  60  days  to  run,  63  days'  discount  is  deducted. — See  note  2,  p.  45. — In  some 
of  the  States  they  charge  64  days'  interest  in  such  cases,  charging  interest  both  for  the  day 
of  date  and  day  of  payment. 

5.  You  can  at  any  time  show  the  balance  in  the  margin  with  your  pencil,  as  is  shown  by 
the  small  marginal  figures  above ;  but  the  deposit  and  check  columns  must  be  carried  forward 
unbroken  until  your  pass-book  is  balanced. 

6.  To  prevent  fraud,  when  dealing  with  strangers,  checks  are  sometimes  made  payable  to 
order :  the  bank  will  not  then  pay  them  until  the  holder  endorses  them  and  identifies  him- 
self the  person  named  in  the  check. 


14G 


EXPENSE  BOOK. 

1.  This  book  is  kept  for  the  purpose  of  enabling  the  Book-keeper  to  avoid  passing  all 
minute  items  of  expense  separately  through  the  books.  One  of  the  junior  clerks,  say  K. 
Banks,  is  paid  a  sum  of  money  sufl&cient  to  defray  the  expenses  for  a  few  weeks.  The  Book- 
keeper debits  Banks,  and  credits  his  Cash  account  for  this  money  when  placed  in  Banks' 
hands.  The  Cash  account  is,  by  this  means,  kept  free  from  derangement;  and  Banks  should 
be  provided  with  a  separate  drawer  to  keep  this  money  in ;  and  as  he  pays  it  out  for  ex- 
penses he  must  enter  a  precise  statement  of  all  the  items  upon  this  book,  adding  it  up  and 
carrying  forward  the  amount  to  the  end  of  the  month,  or  to  the  time  when  it  is  proposed  to 
enter  the  amount  in  the  books.  After  examining  the  amounts  and  additions,  the  Book- 
keeper debits  Expense  and  credits  Banks  for  the  amount,  at  the  same  time  balancing  this 
book  as  below. — See  Day-Book,  note  3,  p.  155.  Afterwards  this  book  re-commences  in  all 
respects  as  before,  Banks  receiving  an  additional  sum  from  the  Cashier  when  the  amount  in 
his  hands  is  expended. 

2.  If  it  be  preferred,  however,  when  the  amount  is  paid  into  Banks'  hands,  the  Book- 
keeper may  make  Expense  Account  Dr.  To  Cash  at  once,  without  passing  it  into  Banks' 
account.  The  amount  is  then  placed  on  the  Cr.  side  of  this  book,  and  the  details  of  ex- 
penditure on  the  Dr.  side,  in  all  respects  as  before,  until  the  money  is  expended,  when  the 
book  should  be  balanced,  and  re-commence  anew  as  before.  Either  of  these  methode  will 
greatly  abridge  the  expense  account  in  any  business. 


1867.  I 

Apr.  110 
112 


14 
15 

20 

25 

30 


May 


1 

■  lio 

15 

|25 

June!  5 

jlO 

120 


For  Cash  paid  postages 

//  cartage  of  goods 

II  coach-hire 

II  laborers 

II  2  rms.  wrapping-paper 

//  41b  twine 

//  for  mending  desk-stool 

'/  ream  letter-paper 

II  postage  to  N.  Orleans 

II  cartage  of  goods 

'/  Box  rent  at  Post  Office 

//  printing  500  cards 

II  painting  a  new  sign 

II  blank  book 

//  wafers 

II  sealing-wax 

11  6  mos.  sub.  Tribune 

//  1  year   //     Sun 

'/  Taxes 

II  postage  for  B.  Butler 
//  //  W.  Hay 

II  laborers 

II  omnibus 

w  advertising 


wafers 

ink,  sand,  &c. 


1867. 

70 

June 

30 

30 

50 

50 

2 

50 

1 

50 

2 

50 
50 

3 

50 

5 

6 

1  8 

i 

50 
20 
50 

3 

3 

4 

10 
20 
50 
10 

^ 

1 

10 
10 

— 

22 

H 

= 

By  amount  to  R-  Banks  Cr. 


45 


147 


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148 


THE  DAY  BOOK-SET  II.,  PART  II. 


INTRODUCTORY   REMARKS. 

1.  This  set  opens  with  the  formation  of  a  new  firm,  by  the  admission  of  James  Cartel 
as  a  partner.  It  will  be  seen  that  the  contents  of  the  old  Ledger  form  the  opening  entries 
of  these  Books. — Compare  Balance  account,  p.  13-4,  with  the  first  entry  in  the  following 
Day  Book,  also  with  the  first  entry  in  the  Invoice  Book,  p.  137,  and  the  first  debit  entry 
Cash  Book,  p.  144.  It  is  arranged  that  each  partner  shall  contribute  $3000  capital;  the 
two  old  members  bring  in  the  eflects  of  their  former  business  as  so  much  of  their  capital, 
the  new  firm  at  the  same  time  assuming  their  liabilities. 

2.  The  usual  manner  of  opening  and  conducting  partners'  accounts  is  to  credit  each  for 
what  capital  he  pays  in  at  the  time  the  books  are  opened  and  for  each  succeeding  payment 
afterwards.  I  would,  however,  recommend  that  two  accounts  be  opened  with  each  partner, 
a  PRIVATE  ACCOUNT  and  a  stock  account. — See  the  partners'  private  accounts,  p.  165, 
and  their  stock  accounts,  p.  173.  The  stock  account  to  be  credited  for  the  whole  amount 
of  capital  to  he  paid  in.  The  private  accounts  are  to  be  debited  for  any  amount  that  is  de- 
ficient of  the  stock,  and  for  what  they  withdraw  from  the  firm,  and  credited  for  what  they 
pay  in  of  the  deficient  stock,  and  for  what  they  may  temporarily  pay  over  their  capital. — 
See  Duif's  and  Carter's  accounts,  p.  165. 

3.  By  this  arrangement,  the  stock  account  of  each  partner  remains  undisturbed  until  the 
time  of  closing  the  books,  and  if  any  adjustment  of  interest  has  to  take  place  it  will  be 
upon  the  private  account. 

4.  All  judicious  practical  merchants  are  aware  of  the  importance  of  avoiding  all  needless 
exposure  of  their  affairs.  This,  in  some  establishments,  is  unavoidable  where  the  partners' 
accounts  and  the  results  of  the  business  are  all  exhibited  on  the  public  Ledger.  In  order 
to  avoid  this  inconvenience  I  have,  in  this  set,  exemplified  the  Private  Ledger. 

5.  Keeping  this  book  entails  no  additional  trouble  upon  the  book-keeper;  there  are  no 
entries  to  make  in  it,  except  at  the  opening  and  closing  of  the  Books.  It  opens — see  p. 
173 — with  nothing  but  the  partners'  stock  accounts;  the  Profit  &  Loss,  Balance  and  Sus- 
pended list  are  opened  at  the  time  of  closing.  By  referring  to  these  accounts — p.  174 — it 
will  be  seen  that  the  results  of  the  business  can  only  be  known  to  those  who  have  access  to 
this  book;  it  is  impossible  to  find  out  any  thing  about  it  from  the  public  Ledger  alone. 

6.  In  business  it  will  also  be  advisable  to  place  the  opening  entry  of  the  business  upon  a 
Private  Journal,  from  whence  it  is  posted  direct  to  the  Ledger  without  appearing  upon 
the  public  Journal.  This  will  create  no  impediment  to  our  system  of  proof,  for  the  book- 
keeper has  only  to  obtain  the  footing  of  this  private  Journal,  and  add  it  to  that  of  the 
public  Day  Book  and  Journal,  and  the  amount  must  agree  with  that  of  the  Trial  Sheet.  It 
is  deemed  unnecessary  to  give  an  exemplification  of  this  private  Journal  here.  It  stands 
connected  with  the  public  Journal  upon  the  same  principle  as  the  private  Ledger  does  with 
the  public  one.  Indeed  the  readiest  way  to  comprehend  them  is  to  consider  the  two  books 
as  one. 

7.  The  following  Day  Book  is  made  up  partly  of  original  entries  and  partly  by  transfers 
from  the  old  Ledger  and  the  Auxiliaries.  I  shall  show  hereafter  that  the  Journal  may  be 
composed  direct  from  the  Auxiliaries,  without  passing  the  entries  through  the  Day  Book, 
but  for  reasons  before  given — p.  62 — I  do  not  consider  it  advisable  to  attempt  that  process, 
until  after  the  student  is  entirely  master  of  the  whole  subject.  The  mode  of  procedure  in 
transferring  the  Auxiliaries  to  the  Day  Book  is  not,  however,  unlike  that  of  journalizing 
them;  it  forms  a  useful  preparatory  exercise  for  that  operation. 

•149 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

1.  It  does  not  matter  which  of  your  Auxiliaries  you  transfer  first:  we  shall  commenca 
with  the  Invoice  Book,  p.  137.  We  commence  on  the  10th  April  (the  previous  entry  being 
already  transferred  in  the  opening  entry),  and  transfer  the  two  entries  under  that  date  to 
the  Day  Book — compare  and  see.  Then  turn  to  the  Sales  Book,  p.  140,  and  do  the  same 
with  three  entries  we  find  under  that  date,  taking  care  to  mark  them  off  these  books ;  but 
not  until  they  are  actually  entered  in  the  Day  Book — Note  4,  p.  142;  next,  look  into  the 
Commission  Sales  Book,  but  it  contains  no  entries  on  this  day.  Go  on  to  the  Cash  Book — 
p.  144 — arid  you  find  two  debits  and  three  credits;  pass  them  into  the  Day  Book  and  mark 
them  off  as  directed — Note  7,  p.  53.  The  entries  of  the  Check  Book  are  generally  made 
on  the  Day  Book  when  they  occur.  The  contents  of  the  Expense  Book  are  not  usually 
transferred  until  the  end  of  the  quarter  or  the  end  of  the  month,  as  may  be  directed. 
Bills  Receivable — p.  148 — has  one  transfer,  and  Bills  Payable  two  upon  this  date.  After 
they  are  transferred  mark  them  off  as  directed  in  the  Cash  Book.  This  completes  the 
transfer  of  that  day's  business  from  the  Auxiliaries :  you  now  re-commence  and  go  over 
them  all  in  the  same  way  again  for  the  next  day's  business,  and  so  on  until  the  contents  are 
all  transferred.  Observe,  you  cannot  transfer  several  dates  from  any  one  book  in  one  entry, 
because  this  throws  the  dates  in  confusion  in  the  Ledger. 

2.  Our  Day  Book  is  footed  and  forwarded  from  page  to  page,  and  if  all  journalized  cor- 
rectly, must  always  exactly  agree  with  that  book.  We  generally  only  pencil  the  footings 
of  the  Day  Book  in  practice :  and  you  ought  to  bring  forward  these  footings  as  fast  as  you 
journalize,  in  order  to  get  the  earliest  notice  of  error  if  it  gets  in.  You  may  foot  your 
Day  Book  column  any  where  on  the  page,  when  you  desire  to  find  the  amount  corresponding 
with  the  foot  of  the  page  on  the  Journal. 

3.  In  making  compound  entries  upon  this  Day  Book,  you  must  guard  against  the  practice 
of  extending  both  debits  and  credits,  as  many  persons  do.  For  instance,  in  the  first  entry 
on  the  opposite  page,  if  we  had  full  extended  the  $5410.55  a  second  time,  it  would  have 
caused  a  disagreement  between  the  Day  Book  and  Journal  at  once,  of  that  amount. 

4.  In  order  to  have  our  books  all  agree  in  amount,  it  is  necessary  that  all  entries  relative 
to  the  balancing  of  accounts  at  the  time  of  settlement  should  originate  upon  this  book. — 
See  first  entry.  May  10,  p.  153. 

5.  We  have  dropped  the  useless  practice  of  perpetually  writing  the  name  of  our  place 
of  business  at  the  head  of  every  page  of  our  Day  Book  and  Journal.  It  is  proper  and 
perhaps  necessary  to  do  so  on  the  first  page  of  any  book,  but  the  repetition  of  it  afterwards 
is  entirely  useless.  But  it  will  often  be  found  useful  to  insert  the  day  of  the  week  with  the 
day  of  the  month. 

6.  I  would  advise  the  student  not  to  be  in  too  much  haste  to  writp  these  exercises,  but 
first  take  a  survey  of  the  operations  recorded  by  tracing  them  from  one  book  to  another  up 
to  the  Ledger:  thus  mentally  examining  the  whole  subject  before  he  attempts  the  mechani- 
cal execution  of  it. — See  Note  4,  p.  27. 

7.  I  need  hardly  observe  that  if  the  preceding  Sales  Book  be  dispensed  with  then  full 
particulars  of  €very  sale  must  appear  upon  the  Day  Book. 

150 


NEW  YORK,  Thursday,  April  1, 1867. 


iz. 


P.  Duflf,  W.  Gordon,  and  J.  Carter  have  this  day  entered  into  partnership; 

it  is  agreed  that  each  partner  shall  furnish  a  capital  of  .     3000. 

DuiF  and  Gordon  bring  in  as  a  part  of  their  capital,  the  effects  of  their  late 

firm,  and  the  new  firm  assumes  their  liabilities  "^  their  Balance  acct. 

Ledger  A.  fol.  4,  -\ 
^  Cash  in  hand  . 
Merchandise 
Edward  Pryor  owes 
S.  Gaynor 

Balances  due  to 
T.  P.  Cope  &  Sons 
Wm.  Hay 
James  Carter     . 
James  Day 

P.  Duff  for  his  net  capital 
W.  Gordon     do.       do. 


•^  Ledger  A 


Ledser  A 


fol. 


fol. 


2100.05 
3217.50 

2. 
91. 


504. 
200. 
36.50 

68. 
2884.47 
1717.58 


5410.55 


Rec'd  the  following  sums  in  cash  "^  Cash  Book  1. 
From  P.  Duff  for  Balance  due  on  his  capital 

//  do.     on  his  private  account     .         .         .         . 

ti      W.  Gordon  for  Balance  due  on  his  capital    . 
//      James  Carter  on  account  of  his  capital 


115.53 

500. 
1282.42 
2000. 


Paid  the  following  sums  '^  C.  B.  1. 
To  the  City  Bank  in  deposit 
For  Fuel    ...... 

To  James  Day  on  account    . 


5800. 
3. 
8. 


*  James  Carter's  ^  joint  capital  is       ...         .         §3000. 

Balance  due  him  by  Duff  and  Gordon  as  above  is  36.50. 

Cash  received  as  above         ....     2000.  2036.50 

Balance  due  on  his  capital  to  debit  of  his  private  account  . 
^^^^     Saturday,  lOt  — 


Bought  Mdse.  of  Wm.  Hay  @  3  mos.  "^  Invoice  Book  1. 
I^aid  cash  for  freight  of  same 


2494.40 
11.60 


Bought  of  A.  Stuart  &  Co.,  at  30  days,  Mdse.  "^  Invoice  Book,  p.  1. 


Sold  E.  Butler  on  account,  @  3  months, 

Mdse.  "^  Sales  Book,  p.  1 

Sold  E.  Pryor  on  acct.  Mdse.  ^  S.  B.  1. 
Sbld  R.  Howe  for  cash        do.        do.     . 


596.50 

16. 
305.75 


Received  cash  of  R.  Butler  on  acct. 


Paid  cash  to  R.  Banks  on  acct.  of  Expenses 
//      do.  to  P.  Duff  on  account 


20. 
30. 


Forward 


1.  This  entry  embraces  botB  sides  of  the  Balance  account  in  the  last  Ledger.— See  p.  134.    The  pupil 

will  insert  the  pages  of  his  own  Ledger— not  ours. 

2.  As  the  journalizing  proceeds,  mark  the  entries  off  the  Day  Book  as  directed. — Note  7,  p.  28.    The 

pages  of  the  Journal  are  not  necessary :  the  dates  are  always  a  suflBcient  reference. 

3.  See  Note  2,  p.  149. 

151 


5410    55 


3897  i  95 


5811 


963    50 
[ 
2506 

216  j 

I 
\ 

I 
t 

918    25 
100 

50^1 

19873:25 


Saturday,  April  10,  1867. 


I  Bro't  over 

!  Received  Samuel  Gaynor's  note  No.  1,  @  30  days,  for  bal.  of  acct. 


Acc'd  Wm.  Hay's  draft  No.  1  on  us,  @  10  days,  for  bal.  due  liim  1st  inst. 
Aco'd  T.  P.  Cope  &  Sons'  draft  No.  2  on  us,  @  10  days,  for  bal.  due  tbem 


Gave  James  Day  our  order  on  E.  Pryor,  payable  in  Merchandise,  for 

================================-     Tuesdays  20.  

Paid  our  acceptance  No.  1  to  Wm.  Hay,  due  23d  inst.,  $200,  less  disct. 

10  cts $199.90 

do.        do.        No.  2  to  T.  P.  Cope,  due  23d  inst., 

$504,  less  disct.  25  cts •         .       503.75 

.       703.65 
35 


Paid  by  check  on  City  Bank 
Amount  of  discount  is 


Paid  E.  Pryor's  order  in  favor  of  J.  Burk  in  Mdse.  from  store 
Paid  S.  Gaynor's  order  in  favor  of  C.  Rhodes  in  Mdse.  from  store 


Cash  to  Mdse.  received  for  sale  to  J.  Camp 


Mdse.,  Dr.  to  A.  Stuart  &  Co.  for  Invoice  of  Silks,  &c. 


Discounted  for  R.  Parker  his  note  No.  2,  @  4  mos.,  for  $1000. 
Paid  him  in  cash,  net  proceeds  ..... 


43^0  months'  discount  is  . 


979.50 
20.50 


=      Friday,  SO.       -= 
Paid  cash  freight  and  cartage  of  A.  Stuart  &  Co.'s  goods 
II      P.  Duff  on  acct.        ...... 

//     Wm.  Gordon    .         . 

//      James  Carter  ....  ... 

II      the  City  Bank  in  deposit 


25.50 
60. 
25. 
15. 
750. 


Received  cash  for  sale  of  A.  Stuart  &  Co.'s  goods,  C.  S.  B.  1. 

//  V         Mdsef  S.  B.  1.    .         ....  

=^  Saturday,  May  1.  — 

*Rec'd  on  account  of  our  James  Carter,  cash  deposited  in  City  Bank, 
Net  proceeds  of  his  Bill  on  Gibson,  Bright  &  Co. 


360. 
138. 


Interest  due  him  on  Hall's  mortgage 


Bought  Mdse.  of  Edward  Pryor,  I.  B.  1. 
do.  of  Sam'l  Gaynor,    do.     2. 


Sold  Mdse.  f  Sales  Book  2.     To  P.  Duff  on  account 
To  C.  Spenser  on  his  note  No.  3  @  20  days     . 

II   W.  Gordon  on  account        ..... 

II   James  Carter  on  account     .         •  '       . 

n   Robert  Banks    ....... 


100. 


64. 
265. 


37. 

284.50 

21.50 

10.25 

6.50 


•Rec'd  of  R.  Butler  his  note.  No.  4,  @  3  mos.,  to  close  acct. 

Forward 


19873 
91 


no  entry  to  make  with  Gibson,  Bright  &  Co.;  though  tliis  biU  was  drawn  by  Carter, 
lartners,  it  was  on  his  own  private  account.    Wo  credit  him  for  the  money  received 

■      - Hall's 

enabl 

152 


1.  The  firm  have 

one  of  our  partners 

for  the  Bill,  and  also  for  the  interest  collected  on  Hall's  mortgage. 

2.  The  number  of  a  note  must  always  accompany  it,  to  enable  us  to  post  it  as  directed,  note  1,  p.  167 


Saturday,  May  1,  1867. 


Bro't  forward     . 
Gave  our  note,  No.  3,  to  A.  Stuart  &  Co.,  to  close  acct.,  for 
•  //  


Received  Cash  on  acct.  from  S.  Gaynor,  C.  B.  1. 
//  It    for  sales  this  day 

//  

Paid  Cash  to  R.  Banks  on  acct.,  C.  B.  1. 

II         II      a  quarter's  rent  of  store 

//         //      to  James  Day  on  acct,     . 

//         //      to  W.  Gordon       ii 
II     to  P.  Duff  // 

=     "~  Monday,  10.      == 

^  Rendered  James  Day  his  account;  balance  due  him  is 


50. 
160. 


30. 
60. 
12. 
10. 
5. 


*  Rendered  Samuel  Gaynor  his  account;  balance  due  us  is 

Thursday,  13.    —  -  — 

Received  Cash,  paid  the  City  Bank  in  deposit,  for  S.  Gaynor's  note  No.  1 
=^  -^^^^^      Monday,  23.  — 

Gave  Wm.  Hay  our  check  on  the  City  Bank  on  acct.  for. 


Bought  Mdse.  of  T.  P.  Cope  &  Sons  on  acct.,  I.  B.  2. 


Shipped  by  the  Brig  '-Tribune,"  by  order  and  for  account  of  T.  P.  Cope 
&  Sons, 

Mdse.  ^  Sales  Book  2 540. 

Paid  charges  in  cash       ........  12. 

Commission  on  $540,  @  5  per  ct 27. 

w  


Received  Cash  for  Spencer's  Note  No.  3 284.50 

//  //     from  R.  Martin  for  an  old  debt  due  Duff  &  Gordon     20. 

//  //     for  sales  of  Mdse.  this  day         ....        180. 

— — ■  It — 


Paid  Cash  to  James  Day  on  account         .... 
//     to  W.  Gordon         //  .... 

-  Tuesday,  31.     • 

Balance  in  deposit  in  the  City  Bank  this  day  on  settlement 


10. 
40. 


Received  Cash  this  day  for  sales 

I'  II     of  S.  Gaynor  on  account  . 

II  II      of  R.  Evans  for  Duff  &  Gordon 


Paid  Cash  to  Edward  Pryor  in  loan 
'/         //     Lost  by  counterfeit  money 
II         II      to  R.  Banks  on  acct. 


II      W.  Gordon    . 

'/      City  Bank  in  deposit 


Forward 


86. 
20. 
25. 


26742 
291 


210 


200. 

20. 

10. 

5. 

450. 


117 

28 

82 

91 

2000 
2300 


484 

50 
4337 

131 


1.  In  order  to  preserve  that  harmony  between  the  books,  upon  which  onr  method  of  proof  is  founded, 
no  entry  must  appear  upon  the  Ledger  (except  the  closing  entries  at  the  general  balance)  without 
originating  upon  the  Day  Book  or  some  of  the  auxiliaries.  When  we  settle  with  an  individual  we 
enter  the  balance  as  above,  and  pass  it  through  the  Journal.— Notes  1  and  2,  p.  159. 


153 


685 
38127 


Tuesday,  May  31,  1867. 


Bro't  over 
Sold  W.  Evans  on  acct.  Mdse.  f  Sales  Book  2 

James  Reed  on  acct.  //  //  2         . 

Joel  Post  II  II  II  2         , 


20. 

182. 
18. 


Sold  Robert  Butler  (Erie)  on  acct.  Stuart  &  Co.'s  goods,  C.  S.  B.  1     576. 

of  our  Mdse.,  S.  B.  2         1.50 


Gave  T.  P.  Cope  &  Sons  our  check  on  City  Bank  on  acct. 
Gave  W.  Hay  //  //  // 

.  II  


*  Received  cash  on  acct.  of  James  Carter,  deposited  in  City  Bank. 

For  Cutler,  French  &  Co.'s  Note 250. 

From  Stay  &  Hall  on  acct 150. 

Saturday,  June  4i 


Take  to  our  acct.  3  ps.  A.  Stuart  &  Co.'s  Carpet,  I.  B.  2  . 


Bo't  Mdse.  of  S.  Henry  &  Co.,  I.  B.  2,  @  5  ^  ct.  disct.  for  Cash    $1116. 
Net  amount  paid  by  check  on  City  Bank ....      1060.20 
Discount         .         .         . 55.80 


Paid  by  check  on  City  Bank  our  Note,  No.  3,  in  favor  of  A.  Stuart  &  Co. 

If  


J.  Reed's  private  acct.  is  Dr.  for  transfer  from  "  Sundry  Drs.  acct."  . 


^  Received  Cash,  deposited,  of  E.  Pryor  for  our  loan  of  31st  ulto. 


Sold  Merchandise,  S.  B.  3,  to  James  Reed  on  acct.  ...  96. 

n  to  Wm.  Hay  n         .         .         .  60. 

II  to  Robert  Parker  ii         .         .         .  60. 

M  to  Geo.  Draper  on  Note  No.  5,  @  8  mos.  630. 

II 


Received  Cash  of  Joel  Post  in  full 18. 

//  of  James  Reed  on  acct.    .....        100. 

II  of  Jennings  &  Co.  for  sale  of  Hardman's  goods      1200. 

II  — _ — . 


Paid  Cash  to  James  Day  on  acct.    . 
to  City  Bank  in  deposit  . 


II          to  freight  and  duty  on  Hardman's  cloths, 
_ //  


5. 

100. 

748. 


Settled  with  T.  P.  Cope  &  Sons. 

Gave  them  our  check  on  the  City  Bank  for 

Our  Note,  No.  4,  at  30  days  to  close  acct. 


1000. 
221. 


Forward, 


1.  Here,  as  at  Note  1,  p.  152,  the  firm  has  collected  money  for  tneir  partner,  Carter.    It  is  almost  unne- 

cessary to  say,  that  we  have  no  entry  to  make  about  Cutler,  French  &  Co.'s  Note,  nor  about  Stay 
&  Hall's  account,  though  we  name  them  on  the  Day  Book.  We  credit  Carter  for  the  amount  col- 
lected ;  and  he  keeps  his  own  private  account  with  these  parties. 

2.  We  do  not  pass  this  cash  into  the  Cash  account  because  we  sent  it  immediately  to  the  Bank.    The 

Bank  account  by  this  means  materially  diminishes  the  cash  transactions,  and  renders  that  acct. 
easier  to  keep.— Note  1,  Pryor's  acct.,  p.  133. 


38127 
220 

577 

500 

200 

400 
180 

1116 
291 
182 
200 

846 

1318 

853 


1221 
46232 


85 


50 


35 


Friday,  June  10,  1867. 


Brot.  Forward 


Bot.  of  William  Hay  on  account  Mdse.  I.  B.  2 
Bot.  of  Thomas  Freeman  on  account  do.  2 


168. 
72. 


Sold  K.  Banks  on  account  Mdse.  S.  B.  3 
do.    E.  Pry  or  do.  3 

If 


108. 
183. 


Discounted  at  City  Bank  K.  Butler's  Note  No.  4.  for  $496.50 
Net  proceeds  at  our  Cr.  in  deposit     .... 
55  days'  Discount     ....... 


Received  Cash  on  account  of  B.  Butler  by  mail 

Rec'd     do     of  McKenzie  &  Abbot  for  sale  of  Hardman's 

goods,  C.  S.  B.  1 

Bec'd     do.     of  E-.  Evans,  for  Duff  &  Gordon 


We  close  sales  of  Hardman's  cloths.     Total  sales  C  S.  B.  1,  is  S2740 


Our  commission  on  the  same  5  "^  ct.,  is 
Net  proceeds  paid  F.  Hardman  in  cash,  is 

I, 

Paid  cash  deposit  in  the  City  Bank 
Paid  James  Day  cash  in  full  . 

= . Monday,  20. 


491.95 
4.55 


100. 

1540. 
41.25 


137. 
1855. 


100. 
13. 


Bot.  Mdse.  of  James  Haven  on  account  I.  B.  2 

Bot.  Mdse.  of  A.  Stuart  &  Co.  on  our  Note,  No.  5,  @  3  mos. 

//  

*  Sold  Mdse.  to  W.  Garden  for  cash  deposited 


28. 
1000. 


Bot.  at  auction  10  cases  Irish  linen,  amounting  to  $1500.     Sold  them  again 
at  the  auction  room  for  10  "^  ct.  advance.     Rec'd  the  advance  in  cash. 


Paid  cash  to  R.  Banks  on  account  . 
Paid  cash  to  James  Haven  in  full  . 

Thm-sday,  30^ 


90. 

28. 


'  Cash  paid  Expenses  Apr.  1st  to  date  by  R.  Banks  "^  Expense 

Bookl 

R.  Banks'  salary  as  clerk  1st  April  to  date  is  . 

*  Total  transactions  to  date 


45. 
300. 


1.  See  Note  3,  p.  143.    Where  you  -will  see  how  this  account  is  closed  upon  the  Sales  Book.    There  is 

no  separate  account  opened  for  it  upon  the  Ledger. 

2.  For  the  reasons  given  in  Note  2,  last  page,  this  cash  never  appears  in  the  cash  account. 

3.  Refer  to  Notes  1  and  2,  p.  147.    You  perceive  Banks  must  here  be  credited  for  his  salary  and  also  for 

vFhat  he  has  paid  out  for  the  store  by  the  Expense  Book. 

4.  Compare  this  amount  -with  the  footing  of  the  Journal,  p.  161.    This  affords  indisputable  proof  of  the 

Day-Book  being  entirely  Journalized.  To  every  practical  merchant  the  importance  of  this  test 
between  these  books,  must  be  at  once  apparent ;  for  there  is  no  step  in  the  process  of  book-keeping, 
where  omissions  are  more  likely  to  take  place,  and  where  they  are  less  looked  for  than  between  this 
book  and  the  Journal.  The  major  part  of  Book-keepers  direct  all  attention  to  the  Ledger:  and 
they  will  sometimes  search  for  weeks  to  find  out  a  trifle  that  prevents  their  trial  from  coming  out 
correct,  while  they  perhaps  never  spend  an  hour  in  comparing  their  Day-Book  and  Journal.  And 
after  all,  their  trial  of  the  Ledger  proves  nothing,  even  when  it  comes  out  correct,  except  that  the 
Ledger  agrees  with  itself.  If  it  does  not  prove  it  to  agree  with  any  one  other  book,  while  our  trial 
proves  it  to  agree  with  the  whole  of  them.— Note  4,  p.  142. 


40232 
240 

291 

496 

1681 

1992 

113 

1028 
1250 

150 

118 

345 


35 


53937 


50 


25 


10 


155 

or  THE 

UMIViroftrxv 


REMARKS  ON  THE  JOURNAL. 

The  following  Journal  is,  in  form,  similar  to  that  of  the  Day-Book,  p.  125. 

The  columns  on  the  left  of  the  writing  contain  the  debits  and  those  on  the  right  the 
credits.  The  columns  next  the  writing  on  each  side  are  the  only  ones  posted  in  detail :  the 
two  others  representing  cash  and  merchandise,  are  footed  and  forwarded  from  page  to  page 
to  the  end  of  the  month,  or  the  end  of  the  year,  as  may  be  desired,  and  from  there  posted 
in  one  sura  into  the  Ledger,  and  the  post  mark  affixed  as  usual. — See  posting  of  our  cash 
and  merchandise  accts.  from  the  foot  of  page  161. 

In  the  Journal  in  the  first  part  of  this  work,  an  entry  w^as  made  for  every  receipt  and 
payment  of  cash,  and  for  every  purchase  and  sale  of  merchandise.  Here  you  will  find 
several  collected  together — see  second  and  third  Day-Book  entries,  April  1st, — and  the 
student  will  perceive  that  there  are  several  other  entries  that  might  be  incorporated  in  one, 
for  instance,  the  first  and  second  entries  on  the  10th  April,  are  both  merchandise  debits,  and 
might,  therefore,  have  "been  journalized  in  one  entry;  but  I  thought  it  better  to  leave  some- 
thing to  the  student's  own  discretion  in  the  matter. 

Before  footing  your  Journal,  always  go  over  the  entries  again  to  see  that  all  the  amounts 
are  extended  into  the  proper  column.  Then  foot  them  first  upon  waste  paper,  which  ought 
to  be  ruled  to  the  pattern  of  the  Journal,  otherwise  you  are  sometimes  liable,  after  the  addi- 
tions are  correctly  made,  to  transpose  the  figures,  and  place  them  in  the  columns  to  which 
they  do  not  belong. 

As  you  foot  and  forward  the  Journal,  the  Day-Book  ought  to  be  kept  up  also  in  order  to 
get  the  earliest  intimation  of  error,  if  it  gets  in.  The  Day-Book  is  generally  only  footed  in 
pencil,  and  you  can  do  it  anywhere  on  the  page  where  you  wish  to  obtain  the  amount  that 
ought  to  correspond  with  the  Journal. 

In  posting  the  Journal  to  the  Ledger  you  make  use  of  the  same  phraseology  as  upon  the 
Double  Entry  Ledger  in  the  first  part  of  this  work.  In  our  last  Ledger,  which  is  intended 
principally  for  a  retail  business,  we,  to  some  extent,  particularized  the  Day-Book  entries: 
that  principle  of  posting,  however,  can  hardly  ever  "be  carried  to  any  extent  in  a  wholesale 
business.  Indeed  it  will  rarely  ever  be  necessary,  because  bills  or  invoices  almost  always 
accompany  the  sale. 

As  your  posting  is  completed,  you  should  always  go  over  the  work  again  and  check  it  as 
directed — Note  2,  p.  32.  No  one  can  expect  to  keep  his  books  free  from  errors  without  this 
precaution. 

These  books  are  specially  adapted  to  daily  posting,  and  if  my  young  readers  are  disposed 
to  profit  by.  my  experience  in  this  matter,  they  will  never  allow  their  books  to  fall  behind  for 
a  single  day,  if  they  can  possibly  avoid  it.  In  some  kinds  of  business,  keeping  the  books  up 
is  almost  indispensable  for  successful  and  efficient  management.  There  are  a  great  many 
book-keepers  who  have  got  it  into  their  heads,  that  posting  books  once  a  week,  or  once  a 
month,  is  sufficient.  There  is  a  method  of  journalizing  and  posting  all  accounts  only  once 
a  month,  upon  which  I  shall  have  some  observations  to  make  hereafter :  but  I  now  repeat 
that  my  advice  to  all  book-keepers  is,  to  keep  their  books  in  such  a  manner  that  when  called 
upon  for  an  account,  they  have  only  to  open  the  Ledger  and  find  the  whole  account  before 
them,  ready  for  settlement.  Those  who  will  give  this  mode  of  posting  six  months'  trial, 
will  not  be  easily  persuaded  to  change  it. 


156 


Dbs. 


NEW  YORK,  April  1,  1867. 


Cks. 


Mdse. 


2100 


05 


3217 


50 


3897 


95 


5800 
3 


963 


50 


2506 


218 


596 
16 


50 


6939 


5C 


305 
100 


6403 


75 


75 


20 
30 

7530 
6403 
5939 

19873 


Sundries  To  Sundries,  $5410.55. 

1  Cash Ledg.  A,  fol.  1 

Mdse "  1- 

Edward  Pryor    .       ' .         .         .  "  3 

Samuel  Gaynor  ....  "  3 

To  T.  P.  Cope  &  Sons     .         .  "  1 

"   William  Hay     ...  "  1 

"   James  Carter's  Stock  acct.  "  2 

"   James  Day        ...  "  3 

"   P.  Duff's  Stock  acct.         .  "  1 

"   W.  Gordon's  Stock  acct.    .  "  1 


Cash  To  Sundries, 

To  P.  Duff's  Stock  acct. 
"   P.  Duff      .         .         .        . 
"   "W.  Gordon's  Stock  acct.    . 
"   James  Carter's  Stock  acct. 


// 


Sundries  To  Cash 
2  City  Bank 
Expense  account. 
James  Day. 


James  Carter,  Dr. 

To  James  Carter's  Stock  acct. 

^ 10.     ^— 


Mdse.  To  Sundries, 
To  Wm.  Hay  . 
"   Cash  . 


Mdse.,  Dr.  to  A.  Stuart  &  Co. 
w 

Sundries  To  Mdse., 
R.  Butler. 
Edward  Pryor. 
Cash. 


Cash  To  R.  Butler, 


Sundries  To  Cash . 
R.  Banks. 
P.  Duff. 

Amounts  forward 
Cash 
Merchandise   . 

Proof      . 


1.  In  opening  new  books,  always  give  a  direct  reference 

to  the  old  Ledger  for  the  transfers. 

2.  We  now  open  an  account  with  the  Bank,  and  debit  it 

for  all  deposits,  and  credit  it  for  all  checks  we  draw. 
—Notes  1  to  7,  p.  146. 
Post  mark  each  entry  with  the  Ledger  page,  on  the  same 
side  and  on  the  same  line  with  the  sum.  Some 
write  their  post  marks  in  red,  but  I  can  see  no 
practical  utility  in  doing  so;  and  it  keeps  you 
handling  two  pens,  while  it  is  desirable  to  confine 
your  whole  attention  to  matters  of  greater  import- 
ance. 


157 


604 

200 

36 

68 

2884 

1717 


115 

500 
1282 
2000 


963 


2494 


216 


100 


13082 

5872 

918 


19873 


50 


53 


42 


50 


40 


5811 


11 


60 


5872 


60 


60 


918 


913 


25 


25 


DBS. 


April  10,  1867. 


Cks. 


Mdse. 


5939  50 


75! 


129 


Cash. 


5103  75 


874 


498 


7530 
91 


200 
504 


20 
704 


45 
397 


1000 


25 
60 
25 
15 
750 


50 


400 


37 

284 

21 

10 


496 


12622 

7775 
6343 


26742 


Bro't  forward,      . 

ff         . 

Bills  Receivable,  No.  1,  To  S.  Gaynor  to  close, 

,f    •    

1  Sundries  To  Bills  Payable, 

Win.  Hay  for  No.  1 

T.  P.  Cope  &  Sons  for  No.  2 

„         

James  Day  To  E.  Pryor 

-^~     20.     -___ = 

1  Bills  Payable  To  Sundries, 

To  City  Bank,  No.  1,  $200,  and  No.  2,  $504, 
"   Interest  acct 

_ _-        „         

Sundries  To  Mdse.  .         .        .        . 
Edward  Pryor. 
S.  Gaynor. 

,f         . — . — — 

Cash  To  Mdse . 

_ ^         

Mdse.  To  A.  Stuart  &  Co 

// 

Bills  Receivable,  No.  2,  To  Sundries, 

To  Cash 

"   Interest  acct 

=-=-     80.     - 

Sundries  To  Cash 

Commission  Sales. 

P.  Duff. 

Wm.  Gordon. 

Carter. 

City  Bank. 

_ « „         . 

Cash  To  Sundries, 

To  Commission  Sales 

"   Mdse 

25156.75*  25H6.75 

—-    May  1.    === 

City  Bank  to  James  Carter  .        .        .        . 

w        

Mdse.  To  Sundries, 

To  B.  Pryor 

"   S.  GaynoT 

—     -        // 

Sundries  To  Mdse 

P.  Duff. 

Bills  Receivable,  No.  3. 

W.  Gordon. 

James  Carter. 

Robert  Banks. 

// _____ 

Bills  Receivable,  No.  4,  To  R.  Butler  to  close  acct. 

Amounts  forwarded, 

Cash, 

Merchandise 

2  Proof 


1.  Each  note  being  posted  separately,  it  becomes  neces- 

sary to  particularize  tliem  by  number  on  the  Jour- 
nal.—See  Bill  acct.,  p.  167. 

2.  Compare  the  total  footings  here  with  those  of  the  Day 

Book,  p.  152. 

*  These  figures  are  given  to  assist  the  learner  in 
making  out  the  trial  sb  jet — p.  172. 


158 


13082  |40 
9] 


200 
604 


20 


(03 


75 


20 


360 


400 


64 
2fi5 


496 


16282 
7727 
2732 


26742 


50 


50 


Cash. 


)872  60 


875 


50 


50 


Mdse. 

918  |25 


442 


874 


138 


359 


75 


DBS. 


May  1,  1867. 


Cbs. 


Mdso. 


6343150 


Cash. 


7775 


210 


75 


2300 


484 


50 


131 


12622 
291 


28 
82 

91 

2000 

679 


4337 


200 

20 

10 

5 

450 


50883  10 
8601  25 
8643i50 

38127  85 


75 


35 


Bro't  forward, 

ff 

A.  Stuart  &  Co.  To  B.  Payable  No.  3  to  close  acct. 
. . //        

Cash  To  Sundries, 

To  S.  Gaynor 

"   Mdse.  received  for  Sales   .... 

: II       . 

Sundries  To  Cash 

R.  Banks. 
Expense  account. 
James  Day. 
TV.  Gordon. 
P.  Duff. 

=1     10.     ===== 

1  James  Day's  old  acct.  Dr.  to  his  new  acct. 
II        

2  Samuel  Gaynor's  new  acct.  Dr.  to  his  old  acct. 
=====     13.  = 

City  Bank  To  Bills  Receivable  No.  1.  . 

—     23.  = 

3  William  Hay  To  City  Bank 

// : 

Mdse.  To  T.  P.  Cope  &  Sons        .... 

// 

T.  P.  Cope  &  Sons  To  Sundries, 

To  Mdse 

"   Cash 

"  Commission 

//         

Cash  To  Sundries, 

To  BUls  Receivable  No.  3       . 

"   Duflf  &  Gordon 

"   Mdse 

. If         

Sundries  To  Cash  .         .        .         . 

James  Day. 
Wm.  Gordon. 

-^     31.  = 

*  City  Bank  new  acct.  To  old  acct. 

1/        

Cash  To  Sundries,  , 

To  Mdse 

"  S.  Gaynor 

"  Duff  <fc  Gordon 

//         

Sundries  To  Cash 

^  E.  Pryor  (in  loan). 
Profit  &  Loss. 
Robert  Banks. 
W.  Gordon. 
City  Bank. 

Amounts  forwarded, 

Cash, 

Merchandise 

Proof 


1.  Here  you  first  post  the  debit  and  balance  Day's  ac- 

count ;  then  post  the  credit  in  the  new  account. 

2.  Here  you  must  first  post  the  credit  and  balance  Gay- 

nor's acct. ;  then  post  the  debit  in  the  new  acct. 

3.  Hay  is  made  Dr.  to  the  Bank  for  the  check ;  no  entry 

is  required  in  the  Cash  Book. 

4.  You  must  now  also  balance  your  Check  Book. — See  p. 

146. 

5.  See  Note  1,  p.  133. 


169 


16282 
291 

50 


28 
82 

91 

2000 
2300 


27 


284 
20 


4337 


25 


25838 
8591 
3698 


38127 


40 


Cash. 


7727 


50 


35 


Mis©. 


2732 


160 


117 


12 


540 


180 


50 


86 


685 


4    Drs. 


May  31,  1867. 


Ces. 


Mdso. 


8643  50 


180 
U16 


Cash. 


8601  25 


1318 


20883  10 


20 

182 

18 


577 


500 
200 


400 


291 
182 
2.)0 


96 

60 

60 

630 


5 
100 
748 

1221 


26373 
9919 
9939 


46232 


50 


Bro't  forward, 

fi        

Sundries  To  Mdse. 
1  W.  Evans  (S.  D.  acct.). 
James  Reed  (S.  D.  acct.). 
Joel  Post  (S.  D.  acct.). 

Robert  Butler  To  Sundries, 

To  Commission  Sales      .... 
"  Mdse 

— — H  

Sundries  To  City  Bank         .... 
T.  P.  Cope  &  Sons. 
Wm.  Hay. 

//    '    

City  Bank  To  James  Carter  .... 

14868.60  11868.60 

__^_^_^^__^    June  4. 

Mdse.  To  Commission  Sales. 

II         

Mdse.  To  Sundries, 

To  City  Bank 

"   Interest 

■  H ■ 

Bills  Payable  No.  3,  To  City  Bank 

I,        

James  Reed  To  Sundry  Drs.  acct. 

// 

City  Bank  To  E.  Pryor  for  Loan  of  31st  ultimo, 

— . If        . . 

Sundries  To  Mdse., 

James  Reed. 

Wm.  Hay. 

Robert  Parker  (S.  D.  acct.). 

Bills  Receivable,  No.  5. 

Cash  To  Sundries, 

To  Joel  Post  in  full         .... 

"  James  Reed 

"  Commission  Sales      .... 

//        

Sundries  To  Cash .        .        .        .        . 

James  Day. 

City  Bank. 

Commission  Sales. 

. .        y        

T.  P.  Cope  &  Sons  To  Sundries  to  close  acct. 

To  City  Bank 

"   Bills  Payable,  No.  4  . 

Amounts  forwarded         .... 

Cash 

Merchandise 

2  Proof      


These  letters  indicate  Sundry  Debtors  account.— See 
p.  170.  We  place  these  marks  liero  as  a  guide  to 
le<irners,  but  no  such  marks  are  required  in  busi- 
ness, because  the  book-keeper  determines  lor  him- 
self, when  he  is  posting,  whether  ho  will  open  an 
account  for  the  individual  or  place  his  name  with 
the  amount  on  the  Sundry  Drs.  account. 

See  Day  Book,  footing  p.  154. 


160 


25838  25 


576 


roo 


400 


180 


1060 
65 


291 
182 
200 


18 

100 

1200 


1000 
221 


32022 
9444 
4765 


46232 


Cash. 


8591  60 


853 


Mdse. 
3698 

220 


50 


846 


DBS. 


June  10,  1867. 


Cbs. 


1028 


Cash. 


9919  25 


1681  25 


150 


26373 


108 
183 


491 
4 


1992 


100 
13 


1250 


345 


30979 
11760 
11207 


63937 


60 


Bro't  forward, 

// 

Mdse.  To  Sundries, 

To  Wm.  Hay 

"   1  Thomas  Freeman  (S.  C.  acct.) 

I,        

Sundries  To  Mdse 

R.  Banks. 
E.  Pryor. 

If        

Sundries  To  Bills  Receivable  No.  4 
City  Bank. 
Interest. 
.        ,1 

Cash  To  Sundries, 

To  R.  Butler 

"  Commission  Sales      .... 

"   Duff  &  Gordon 

— ___ I,        

Commission  Sales  To  Sundries, 

To  Commission 

"   Cash 

I,        

Sundries  To  Cash 

City  Bank. 
James  Day  in  full. 

—     20.  = 

Mdse.  To  Sundries, 

To  James  Haven  (S.  C.  acct.) 

"   Bills  Payable  No.  5  . 

// 

City  Bank  To  Mdse . 

It         

Cash  To  Profit  &  Loss 

ff         

Sundries  To  Cash 

Robert  Banks. 
James  Haven  in  full. 

=^.=^zz==^^^     30. — 

Expense  account  To  R.  Banks     .        .        .        . 

13911.75  13911.75 

Total  Amounts  to  date 

"     2  Cash 

"     Merchandise 

3  Proof        


1.  This  indicates  Sundry  Creditors'  account. — See  Note 

1,  last  page,  and  p.  170. 

2.  This  makes  our  first  Journal  period.    From  here  the 

total  amounts  of  the  cash  and  merchandise  debits 
and  credits  are  posted  into  the  Ledger. — See  p.  166. 

3.  Compare  this  amount  with  our  Day  Book  footing,  p. 

155,  also  with  the  trial  sheet,  p.  171. 


32022 


168 

72 


496 


100 

1540 

41 


137 


1000 


150 


345 


36100 

11530 

6306 


53937 


25 


50 


25 


11855 
113 


Cash. 


9444  60  4765 


lis 


Mdse. 
50 


291 


1250 


161 


CONCLUDING  REMARKS  UPON  THE  JOURNAL. 

1.  The  mode  of  journalizing  the  last  Day  Book,  it  is  presumed,  will  be  sufficiently  under- 
stood by  the  examples.  We  shall  now  endeavor  to  explain  verbally  the  manner  of  com- 
posing the  Journal  from  the  Auxiliaries,  without  passing  the  entries  through  the  Day  Book, 
as  we  have  here  done.  When  the  nature  of  the  business  will  admit  of  this,  it  will  consider- 
ably lessen  the  amount  of  writing. 

2.  It  is  to  be  observed,  however,  that  in  a  business  which  frequently  creates  compound 
entries,  journalizing  in  this  way  will  meet  with  many  awkward  impediments;  for  instance, 
the  first  Day  Book  entry  of  this  set,  cannot  be  explicitly  stated  without  embracing  the  first 
merchandise  entry  on  the  Invoice  Book,  and  the  first  debit  entry  on  the  Cash  Book.  The 
only  way  of  getting  over  this  obstacle  in  journalizing  the  auxiliaries,  is  to  let  such  entries 
pass  into  the  Day  Book  and  begin  a  new  period — that  is,  commence  immediately  after  these 
entries  bringing  forward  and  journalizing.    We  will  now  endeavor  to  explain  the  process  of 

JOURNALIZING  FEOM   THE   AUXILIARIES. 

3.  When  this  is  done,  the  Day  Book  will  contain  a  much  smaller  number  of  entries ',  for, 
if  you  adopt  this  method  of  journalizing,  you  must  keep  the  entries  belonging  to  each  auxi- 
liary upon  itself.  They  must  not  appear  upon  the  Day  Book  (except  in  such  cases  as  above 
stated) ;  if  they  do,  they  will  certainly  lead  to  confusion. 

4.  Although  it  does  not  matter  which  book  we  journalize  first,  yet  it  is  better  to  adopt 
some  regular  course  :  say  we  begin  with  the  Day  Book,  and  journalize  all  the  entries  under 
the  present  date.  Then  make  Cash  Dr.  to  Sundries  for  all  entries  on  the  Dr.  side  of  the 
Cash  Book,  and  Sundries  Dr.  to  Cash  for  all  entries  on  the  Cr.  side.  Merchandise  is  Dr. 
to  Sundries  for  all  entries  under  the  same  date  on  the  Invoice  Book ;  and  Sundries  Dr.  to 
Merchandise  for  all  entries  on  the  Sales  Book.  Mark  the  entries  off"  the  Cash  Book  as 
directed  Note  7,  p.  53,  and  off  the  Sales  and  Invoice  Book,  as  directed  for  the  Day  Book, 
Note  7,  p.  28.  Bills  Receivable,  Bills  Payable,  and  Commission  Sales  Book,  are  each  jour- 
nalized in  their  turn  in  the  same  way,  and  marked  off  as  directed  with  the  Cash  Bo.ok. 

5.  You  next  take  each  book  in  the  same  order,  and  journalize  the  following  day's  busi- 
ness as  before ;  and  so  on,  until  you  have  all  brought  up ;  observing  that  the  footings  of  the 
Invoice,  Sales  and  Cash  Book,  agree  with  their  representatives  in  the  Journal  as  you 
proceed. 

6.  This  process  of  journalizing  does  not  disturb  our  mode  of  proof.  The  footing  of  the 
Auxiliaries;  and  that  of  the  Day  Book,  have  only  to  be  added  together  to  agree  with  the 
Journal. 

7.  Some  journalize  a  whole  month  of  the  Cash  Book  in  one  entry,  and  then  do  the  same 
with  the  Sales  Book,  preserving  the  order  of  the  dates  in  the  margin  of  the  Journal ;  but 
this  method  produces  such  a  confusion  of  dates  in  the  Ledger,  that  it  can  never  be  recom- 
mended. 

We  have  now  to  explain  the  second  mode  of  abbreviation,  viz. : 

POSTING   ALL  THE   PRIMARY   BOOKS   DIRECT   TO   THE   LEDGER. 

8.  When  the  nature  of  the  business  admits  of  it,  this  plan  of  posting  effects  the  greatest 
reduction  in  writing  that  perhaps  can  be  made  in  Book-keeping.  But  it  is  subjected  to  the 
same  impediments  from  compound  entries,  that  we  have  just  noticed,  Note  2,  and  which  can 
only  be  got  over  in  the  same  way.  We  have  already  explained  the  manner  of  posting  the 
Invoice  and  Sales  Book,  p.  139  and  142.  When  it  is  intended  to  post  the  Cash  Book  in 
this  manner,  a  folio  column  will  be  required  either  next  the  money  columns  or  next  the 
date  columns,  in  which  you  will  insert  the  folio  of  the  Ledger,  as  you  proceed  with  the  post- 
ing. The  footings  of  these  three  books  are  summarily  posted  at  the  end  of  the  month  or 
the  end  of  the  quarter  as  from  the  Journal. 

9.  The  Bill  Books  and  the  Commission  Sales  Book,  may  be  posted,  both  sides,  by  the 
same  process ;  but  I  would  recommend  their  passing  into  the  Day  Book. 

10.  The  Day  Book  should  have  the  entries  all  made  in  Journal  form,  when  it  is  intended 
to  post  it  in  this  way.     I  am  now  alluding  to  the  common  form  of  Day  Book. 

11.  Our  proof  is  obtained  by  adding  together  the  footings  of  the  Cash,  Invoice,  Sales,  and 
Day  Book.     The  amount  must  agree  with  the  amount  of  the  Ledger  trial,  as  on  p.  171. 


ON  MONTHLY  JOURNALIZING. 

1.  The  object  of  this  method  is  to  condense,  not  only  the  cash  and  merchandise,  but  all 
the  accounts  in  the  Ledger,  into  one  line  each  in  the  month.  Many  persons  are  strongly 
prejudiced  in  favor  of  this  plan  of  journalizing,  on  account  of  the  abridgment  it  makes  in 
the  accounts  in  the  Ledger  :  in  some  kinds-of  business  it  will  no  doubt  work  tolerably  well ; 
but  where  the  book-keeper  is  frequently  called  upon  to  make  up  statements  of  accounts,  and 
to  effect  settlements,  in  a  business  of  any  magnitude,  there  must  ever  be  this  insuperable 
objection  to  it : — the  books  can  never  be  kept  up.  You  cannot  commence  the  journalizing 
of  the  month's  business  until  the  month  has  expired,  and  before  you  can  journalize  and  post 
this  month,  a  considerable  part  of  the  next  must  have  elapsed ;  in  a  word,  the  nature  of  the 
process  will  never  permit  you  to  get  your  books  up  to  the  date  of  settlement.  Even  the 
strongest  advocates  of  this  method  admit  the  force  of  this  objection,  and  can  offer  no  advan- 
tage to  counterbalance  it,  but  the  abridgment  of  the  accounts  in  the  Ledger.  I  must,  ho^'- 
ever,  name  other  objections  to  the  process,  viz.  the  chances  of  errors  and  omissions  in  jour- 
nalizing ;  the  risk  of  making  errors  in  drawing  off  accounts  current,  and  making  settlements 
without  having  your  books  posted ;  the  correctness  of  which  can  only  be  determined  when 
the  accounts  are  posted;  then,  the  time  required  in  searching  up  the  Day  Book  entries  for 
the  Journal,  is  certainly  at  least  equal  to  the  time  required  for  writing  them.  Consequently, 
in  less  time  than  any  person  could  possibly  journalize  a  month's  business  in  this  way,  by 
our  plan  of  posting  our  first  Day  Book,  we  should  have  it  all  posted  up  into  the.  Ledger. 
The  author  once  kept  a  set'of  books  upon  this  plan;  these  remarks  are,  therefore,  dictated 
by  experience. 

2    Some  directions  will  now  be  required  on  the 

DETECTION   AND   CORRECTION   0!F   ERRORS. 

If  your  trial  does  not  agree  with  the  footings  of  the  Journal,  compare  the  footings  of  your 
Cash  Debits  and  Credits  with  those  in  that  book :  also,  those  of  the  Merchandise  account ; 
then  the  Bill  Books  and  the  Bill  accounts.  Get  a  trial  from  the  Commission  Sales  Book  to 
compare  with  its  representative  in  the  Ledger,  compare  the  footings  of  the  Check  Book 
with  the  Bank  account;  and  if  you  have  posted  direct  from  the  Invoice,  Sales  and  Cash 
Book,  these  books  must  be  compared  with  their  representatives  in  the  Ledger.  If  all  these 
books  and  the  Ledger  agree,  the  error  must  be  in  some  of  the  personal  accounts  or  some 
account  not  represented  by  any  of  the  above  books,  and  must  be,  between  the  Journal  and 
the  Ledger,  in  the  Ledger  or  in  the  trial  itself.  Taking  the  Day  Book  and  Journal  as  the 
best  authority,  we  ascertain  the  difference  between  them  and  the  Ledger  trial.  Sometimes 
we  find  one  side  agreeing  with  the  Journal :  in  this  case  our  attention  is  confined  to  one 
side  of  the  Ledger  only.  In  all  cases  it  is  proper  to  know  the  amount  of  error;  for  if  there 
be  but  one,  knowing  the  amount  of  it,  sometimes  readily  leads  to  its  discovery.  When  the 
error  is  found,  if  it  cannot  be  corrected  as  directed,  page  98,  the  correcting  entry  must 
originate  upon  the  Day  Book  or  some  other  primary  Book. 

3.  When  an  error  occurs  in  the  Journal  by  extending  into  the  wrong  column,  if  you  have 
footed  and  forwarded  the  amounts  before  discovering  it,  at  your  next  footing  add  the  amount 
to  the  column  to  which  it  belongs,  and  subtract  it  from  that  into  which  it  was  erroneously 
oxtended.— Read  Note  2,  p.  98. 

Errors  in  any  of  the  primary  books  are  corrected  as  directed,  Notes  10  and  11.  page  98, 
and  Note  2,  p.  125. 

4.  We  will  now  endeavor  to  give  our  readers  some  useful  directions 

IN  RULING  BOOKS   OF  ACCOUNTS. 

In  ordering  books,  always  provide  the  binder  with  an  exact  pattern  of  the  size  of  paper 
and  ruling.  Never  choose  books  of  any  kind  that  will  keep  you  constantly  cramped  for 
space  to  write  upon.  ^lany  persons  use  Day  Books  and  Cash  Books  made  of  cap  paper 
"  folded  long,"  and  are  forever  trying  to  cram  their  entries  upon  a  line,  very  often  leaving 
them  half  finished  in  the  attempt. 

In  the  next  r»lace,  never  throw  away  unnecessary  space  in  margins  and  date  columns 

163 


Five-tenths  of  an  inch  is  ample  space  for  the  month,  and  three-tenths  for  the  date  and  cent 
columns.  The  width  of  the  dollar  column  depends  on  the  magnitude  of  the  business ;  but 
the  figures  in  this  column  ought  not  to  be  crowded.  Five-tenths  of  an  inch  is  a  good  space 
for  four  figures,  and  six  figures  ought  to  have  seven-tenths.  Three-tenths  faint  ruling  is  a 
good  size  for  common  Day  Books,  Journals,  &c. ;  but  Ledgers  and  the  six-column  Day  Book 
or  Journal  may  be  somewhat  narrower. 

Mechanics  and  retailers,  proposing  to  post  their  Ledgers  as  suggested.  Note  2,  p.  129,  will 
find  it  useful  to  have  the  debit  writing  space,  ruled  one-fourth  or  one-third  wider  than  the 
credit  space.  In  small  Ledgers  it  is  better  to  bind  the  index  in  the  book ;  in  large  ones  it 
is  more  convenient  to  have  it  bound  separate.  In  either  case,  direct  the  binder  to  ^'  throw 
over"  the  first  leaf  of  the  index,  and  commence  lettering  on  the  third  page.  This  enables 
the  book-keeper  to  place  the  upper  letter  upon  each  leaf  on  the  left  page,  and  the  lower  one 
on  the  right,  thus  giving  each  letter  a  full  page  throughout  the  index. 

In  the  six-column  Day  Book  or  Journal,  it  will  be  well  to  have  the  dividing  lines  between 
the  cash  and  sundries  column,  on  both  sides,  black  or  some  dark  color ;  it  will  also  be  useful 
to  order  a  red  footing  line  across  the  bottom  of  the  page,  the  fourth  line  from  the  bottom. 

Before  concluding  this  subject,  I  will  take  leave  to  offer  a  suggestion  upon  the  con- 
struction of 

BOOK-CASES. 

In  vaults  and  safes,  the  book-cases  are  almost  universally  constructed  for  setting  all  the 
books  on  end,  leaving  the  whole  weight  of  the  paper,  by  this  means,  hanging  and  straining 
•upon  the  binding,  and  not  unfrequently  breaking  it.  It  will  take  no  more  space  to  contain 
the  books  upon  horizontal  fixtures  than  in  perpendicular  ones,  and  it  is  obvious  that  all 
large  books  are  less  liable  to  injury  in  the  one  position  than  the  other. 


INDEX  TO  LEDGER  B. 


A. 

J. 

Bills  Receivable         ....         3 

K. 

Bills  Payable 

. 

.    3 

L. 

Banks,  liobert  . 

5 

Merchandise 

,                 , 

,        , 

Butler,  Robert 

.    5 

N. 

Carter,  James  . 

• 

1 

0. 

Cash    . 

.    2 

Pryor,  Edward 

. 

. 

Cope  &  Sons,  T.  P. 

2 

Profit  &  Loss 

• 

,        , 

City  Bank     . 

.    4 

Post,  Joel 

. 

. 

Commission  Sales 

5 

Parker,  Robert 

, 

, 

Commission  . 

.    6 

Q. 

Duff,  P.    . 

1 

Reed,  James     . 

.     6 

Day,  James  . 

.    3 

Stuart,  A.,  &  Co. 

. 

,        , 

Duff  &  Gordon 

5 

Sundry  Drs. 

, 

. 

Expense 

.    4 

Sundry  Crs. 

. 

. 

Evans,  W. 

6 

T. 

Freeman,  Thomas 

.    6 

U. 

Gordon,  Wm.    . 

1 

V. 

Gaynor,  Samuel    . 

.    1 

W. 

Hay,  William   . 

2 

X. 

Haven,  James 

.    6 

Y. 

Interest    . 

4 

Z. 

164 


Dr. 


P. 


DUPP. 


Cr. 


Apr. 
May 
Jane 


10 

30 

1 

30 


Cash, 

II 
Mdse. 
Cash, 
Balance, 


fol. 


30 

60 

37 

5 

421 


553 


1867. 

Apr. 
June  130 


Cash, 

Duflf  &  Gordon, 


June]  30  Balance  bro't  down, 


500 
53191 


553 


421  n 


n 


Read  Notes  2  and  3,  p.  149. 
1.  This  and  the  two  following  accounts  are  the  partners'  private  accounts;  they  are  debited  for  all  sums  withdrawn  and 
credited  for  any  sums  paid  in  over  the  capital.    The  credits  of  June  30  at  this  and  Gordon's  account  are  their  dividends 
of  debts  collected  for  the  old  firm. 


w. 


GORDON. 


1867. 

Apr. 
May 


June 


Cash, 
Mdse. 
Cash, 

II 

II 


101.50 
32.34 


Balance  bro't  down, 


1867. 

2 

25 
21 

50 

June 

30 

3 

10 

40 

5 

101 

50 

69 

16 

Duff  &  Gordon, 
Balance, 


fol. 


32  34 


69 


101 


16 


50 


JAMES 


CARTER. 


1867. 

Apr 
May 


J.  Carter's  Stock  acct., 

Cash, 

Mdse., 


988.75 
800. 


June  30  Balance  bro't  down, 


1867. 

1 

963 

50 

May 

1 

2 

15 

31 

2 

10 

25 

June 

30 

988 

75 

1     , 

1    188 

75 

j 

City  Bank, 
Balance, 


fol. 


400 
400 

188175 


988  75 


1.  The  first  debit  entry  above,  is  what  this  partner  was  deficient  in  his  capital  when  the  books  were  opened. — Refer  to  his 

stock  account,  p.  173. 
?.  The  two  credits  are  payments  on  account  of  this  deficiency.    If  interest  is  to  be  charged,  a  Day  Book  entry  will  be  made  of 

it,  and  it  will  be  brought  to  this  account,  not  to  his  stock  account. 


SAMUEL 

GAYNOR. 

1867. 

Apr. 

2J 

10 
30 

Amt.*f  Ledger  A,  fol. 
Mdse. 

3) 
2 

91 

397 

1867. 

Apr. 
May 

June 

10 

1 

10 

31 
30 

Bills  Keceivable, 

Mdse., 

Cash, 

Balance  debit  in  n/a.. 

2) 
3 

3 
2 

91 

265 
50 

82 

488 

488 

May 

Balance  on  settlement, 

82 

Cash, 

Balance,                  fol. 

'20 

62 

82 

82 

June 

Balance  bro't  down, 

62 

Refer  to  Note  2,  Warden  &  Bell's  account,  p.  105. 
1.  Where  a  settled  account  is  comprised  in  a  single  line,  it  is  suflBcient  to  mark  the  entries  on  each  side  as  above,  and  omit  them 
in  the  next  account  current.    But  the  author  has  witnessed  so  much  confusion  and  trouble  in  accounts  from  inattention 
to  closing  them  at  the  time  of  settlement,  that  he  again  requests  the  student's  attention  to  Note  1,  Wood's  account,.p. 
15,  Note,  p.  20,  Notes  5  and  6,  p.  23,  Note  4,  p.  70,  and  Note  1,  Carter's  account,  p.  105. 


2    Dr. 


CASH. 


Cr. 


1867. 

J  line 


Jun 


30 


30 


Sundries  to  date,  inso.M 

11530.60 


Balance  bro't  down, 


11750 


11750 


219 


1867. 

June 


30 


Sundries  to  date, 
Balance, 


11530 
219 


11750 


60 

90 

50 


MERCHANDISE 


ACCOUNT. 


1867. 

June 


30 


Sundries  to  date, 
Private  Ledger,         f. 


5 
2 

11207 

630G 

5^ 
50 

1867. 

June 

30 

17514 

1 

1 

Sundries  to  date. 
Private  Ledger,         f. 


6306 
11207 


17514 


50 

50 


I 

1.  Poet  the  new  business  to  this  acconiit  as  before.    ■When  closing  the  Ledger,  transfer  again  with  a  double  balance  aa  above. 


T.  P. 


(Philadelphia)        COPE  &  SONS, 


1^67 

Apr.  10 
iV%  23 
31 
June    4 


Bills  Payable, 
Sundries, 
City  Bank, 
Sundries, 


1867. 

2 

(  504 

Apr. 

1 

3 

579 

May 

23 

4 

500 
1221 

2804 

Sundries  "^Ledg.  A,  f. 
Mdse., 


K    504 
2300 


2804 


1,  This  account  affords  another  illustration  of  •what  is  alluded  to  in  Note  1,  Gaynor's  account,  p.  165.    In  business  this  mark 
is  made  upon  the  double  red  line,  and  so  small  as  not  to  disfigure  the  account. 


WILLIAM 


(Boston) 


HAY. 


1867. 

Apr. 
May 

June 


10 

23 

31 

4 

30 


Bills  Payable, 
City  Bank, 

It         II 
Mdse., 
Balance, 


1867. 

2 

(,  200 

Apr. 

1 

3 

2000 

10 

4 

200 

June 

10 

2460. 

60 

fol. 

2 

402 

40 
40 

June 

30 

2862 

Sundries  Ledg.  A,     f. 
Mdse., 


Balance  bro't  down, 


,  f- 

1 

:  200 
2494 

2862.40 
2460._ 

5 

168 

"^02.40 

2862 

vn. 

402 

40 


40 


40 


A. 


STUART  &  CO. 


1867. 

May 


Bills  Payable, 


291 


291 


1867. 

Apr. 


10  Mdse., 
20 


216 
75 

291 


166 


1 

Dr. 

JAMES 

(75  Tenth  Street) 

DAY. 

Cr. 

8 

1867. 

Apr. 
May 

1 
10 

1 

10 

23 

4 

10 

Cash, 
E.  Pryor, 
Cash, 
New  acct., 

Cash, 
II 
II 

1 

2 
3 

3 

t 

8 
20 
12 

28 

1867. 

Apr. 
May 

1 
10 

Sundries,  Ledg.  A,  f. 

1 
3 

3 

68 

68 

68 

28 

May 
June 

10 

5 

13 

Old  acct., 

28 

28 

1.  The  liist  debit  entry  before  the  first  balance  abore,  and  the  first  credit  after  it,  are  in  one  Jouraal  entry,  the  first  one  posted 
he/ore  the  account  is  balanced,  and  the  last  one  after  it. — :Note  1,  p.  159,  and  Note  1,  p.  153. 


EDWARD 


(25  John  Street) 


PRYOR. 


1867. 

Apr. 

1 

10 

20 

May 
June 

31 
10| 

i 

June 

1 

30 

Amt.  Ledg.  A, 
Mdse., 

// 
Cash  in  Loan, 
Mdse., 


1867. 

3 

2 

Apr. 

10 

1 

16 

May 

1 

2 

45 

June 

4 

3; 

200 

5 

183 

30 

446 

162 

James  Day, 

Mdse., 

City   Bank,  Loan   of 

31st  Ult.,  284. 

Balance  f. 


Bal.  bro't  down, 

1.  The  above  loan  on  May  Slst,  is  passed  through  account  as  directed  at  Prj'or's  acct.,  p.  133. 


20 
64 

4}t    200 
162 


446 


BILLS 

RECEIVABLE 

, 

1867. 

Apr. 
May 
June 

10 

20 

1 

4 

30 

S.  Gaynor, 
Sundries, 
Mdse., 
R.  Butler, 
Mdse., 

No.l, 

2, 
3, 

2..        ^' 
872.        3  J 

1630. 

No.  2, 
5, 

2 
2 

4 

91 

1000 

284 

496 

630 

50 
50 

1867. 

May 

June 
May 
June 

13 

30 
23 
10 

30 

City  Bank,        No.  1. 
Carried  down,          2, 
Cash,                        3, 
Sundries,         872.     4, 
Carried  down,          5, 

3 

3 
5 

91 

1000 

284 
496 

630 

50 
50 

2502 

= 

2502 



June 

Bro't  down, 
//           // 

1000 
630 

BILLS 


PAYABLE. 


1867. 

Apr. 
.Tune 


Sundries,  No.  1, 

2, 

City  Bank,     »95.       3, 

Carried  down,  4, 

H  II  5, 


1867. 

2 

200 
504 

Apr. 

10 

4 

291 

May 

1 

221 

June 

4 

1000 

June 

20 
30 

2216 

W.  Hay, 

Cope  &  Sons, 
Stuart  &  Co., 
Cope  &  Sons, 
Mdse., 


No.  1, 

2, 
3. 
4, 


2 

200 

504 

3 

291 

4 

221 

5 

1000 

2216 

221 

1000 

Bro't  down.      No.  4, 
It        II  5, 

1.  Referring  our  readers  to  the  copious  directions  for  the  management  of  these  accounts,  pp.  33,  34,  52, 103,  and  104,  we  have 

now  only  to  explain  the  peculiarity  in  the  mode  of  posting  adopted  above.  The  notes  are  all  posted  separately,  accom- 
panied with  their  respective  numbers,  and  the  counter-post,  with  its  number,  must  be  always  kept  upon  the  same  line 
with  the  first  entry,  leaving  blanks  opposite  all  notes  in  hand  in  the  Bills  Receivable  account,  and  opposite  all  unpaid 
notes  in  the  Bills  Payable  account. 

2.  In  closing,  the  blanks  must  be  all  filled  in  red,  and  the  same  notes,  with  their  numbers,  recapitulated  in  new  account.    Thi:< 

method  of  posting  these  accounts  will  contribute  much  to  their  correctness,  and,  in  some  cases,  reudera  the  Bill  Boob 
unnecessary. 


Dr. 


CITY 


BANK. 


Cr. 


1867. 

Apr. 
May 

1 

30 

1 

13 

31 

4 
10 
20 

30 

te2, 
aous 
nd  d 

Cash, 

// 
J.  Carter, 
Bills  Receivable, 

1 

2 
3 

3 
4 

5 

,p- 

tude 
esof 

5800 

750 

400 

91 

1867. 

Apr. 
May 

May 
June 

1  Bank  a 
ng  paym 

20 
23 
31 

31 
4 

30 

ccou 
ents 

Bills  Payable, 
Wm.  Hay, 

Balance  to  n/a., 

2 
3 

4 

2 

the( 

703 
2000 
4337 

7041 

65 
35 

7041 

June 

Bal.  bro't  down, 
Cash, 

James  Carter, 
E.  Pryor, 
Cash, 

Bills  Receivable, 
Cash, 
.Mdse.,                  L^;|° 

4337 
450 

•400 
200 
100 
491 
100 

1250 

35 

1 
95| 

t 

Sundries, 

Mdse., 

Bills  Payable, 

Cope  &  Sons,       8051.20 

Balance,                      f. 

700 
1060 

291 
1000 

4278 

20 
10 

4278.10 

Bal.  bro't  down, 

p.  157,  and  Note  1,  Day's  accouni 
B  doing  a  business  of  any  magni 
ilminishes  the  trouble  and  chanc 

7329 

30 

7329 

30 

June 

See  No 

Every  ] 

a 

4278 

167. 
should  1 
error  in 

10 

ceep 
maki 

nt.    It  simplifies  and  shortens 

Dash  acco 

ant, 

PROFIT 

&                       LOSS. 

1867. 

May 
June 

31 

30 

accc 
heP 

Cash, 
Pr.&Loss,Pr.Ledg.  f. 

3 
2 

unt 
ilanc 

20 
130 

1867. 

June 

20 

Cash,  ' 

5^ 

! 

ePr 

150 

150 

150 

1.  This 
t 

nint  is  continued  in  this  Ledger 
rivate  Ledger.— See  the  above  bs 

1  the  tiin 
e  in  Profi 

1 

eof 
t&L 

closing,  when 
oss  a^,oount,  j 

its  balance  is  transferred  to  th 
).  174. 

Dfit  &  Los 

3  in 

EXPENSE 

ACCOUNT. 

1867. 

Apr. 
May 
June 

1 

1 

30 

Cash, 

// 
R.  Banks,               ws. 

1 
3 
5 

3 

60 
345 

1867. 

June 

30 

Private  Ledger,         f. 

2 

408 

408 



408 

INTEREST 

ACCOUNT, 

1867. 

June 

10 
30 

1. 

Bills  Receivable, 
Pr.&Loss  Pr.Ledg.  f. 

5 
2 

re  be 

4 

72 

55 

10 

1867. 

Apr. 
June 

the  Profi 

20 
4 

t&] 

Bills  Payable, 
Bills  Receivable, 

Mdse.,                             76.65 

2 
4 

2r,p 

20^ 

-  55! 

35 

50 

80 

76 

65 

76 

174. 

65 

rhis,  and  the  Expense  account,  a 

II 

>th  closed  into 

[jOSS  account  in  the  Private  Ledg 

168 


Dr. 


COMMISSION  SALES. 


Cr. 


5 


1867. 

Apr.  30 

June    4 

10 

,30 


Cash, 

// 
Sundries, 
Balance, 


June  30  Bal.  bro't  down. 


1867. 

2 

25 

50 

Apr. 

30 

4 

748 

May 

31 

».50 

5 

1992 

June 

4 

f. 

2 

3856 

10 

1 

June 

30 
30 

6621 

50 

2765 

50 

Cash, 

Robert  Butler, 

Mdse., 

Cash, 

// 
Balance, 


3856. 


2 

360 

4 

576 

'    180 

1200 

5 

!  1540 

2705,50 
6621  bo 


3856 


See  Notes  1  to  4,  p.  143. 

1.  This  account  represents  all  our  commission  business.    All  the  accounts  are  kept  and  settled  on  the  Commission  Sales  Book. 

2.  We  have  closed  this  account  by  Double  Balance,  for  the  purpose  of  practically  exemplifying  that  operation,  though  this 

mode  of  balancing  was  not  required  here,  or,  indeed  any^vhere,  except  when  transferring  an  account  from  one  Ledger 
to  another,  which  you  wish  to  leave  closed  on  the  old  book,  and  to  re-open  on  the  new  one  with  the  whole  amount  of 
each  side  brought  forward.  You  will  perceive  that  the  above  operation  will  effect  that  purpose. — See  Morris'  Sales, 
p.  107. 


ROBERT 


(Clerk) 


BANKS. 


1867. 

Apr.  10 
May 


June 


Cash, 

Mdse., 

Cash, 

II 
Mdse,, 
Cash, 
Balance, 


264.50 


1867. 

[ 

1 

20 

June 

301 

2 

6 

50 

! 

3 

30 
10 

5 

108 
90 

2 

80 

50 

June 

30 

345 

f.  2 


30  i  Expense  acct 


Bal.  bro't  down, 


345 


345 


80^0 

! 


ROBERT 

(Albany) 

BUTLER. 

1867. 

Apr. 

10 
31 

Mdse., 

1 
4 

596 

50 

i 

1867. 

Apr. 
May 

June 

10 
1 

10 

30 

Cash, 

Bills  Receivable,    . 

1 
2 

5 
2 

!    100 
!    496 

596 

50 

596 

1 

50 

i 

50 

May 

Sundries, 

577 
577 

50 
50 

Cash, 

Suspended  List,        f. 

100 
477 

50 

577 

50 

i 

— 

DUFF 


& 


GORDON. 


1867. 

June 

30 

P.  Duff, 
W.  Gordon 

fol. 

1 

1 

53 
32 

91 
34 

1867. 

May 
June 

23 
31 
10 

Cash, 
// 

//                                           86.25 

3 
5 

20 
25 

41 

25 

86 

251 

1      86 

25 

1.  This  account  is  credited  for  all  collections  made  of  Duff  &  Gordon's  old  debts,  and  if  any  thing  is  lost  upon  any  of  the  ac- 
counts from  which  they  credited  themselves  in  the  new  firm,  this  account  will  be  debited  for  the  amount.  Oif  the  above 
collections  they  make  a  dividend  III  the  s^me  proportion  as  they  divided  the  grain  when  they  closed  their  books. — See 
Profit  &  Loss  account,  p.  134. 

169  ~ 


6     Dr. 


SUNDRY 


DEBTORS. 


Cr. 


1867. 

May 


June    4 


June 


31 


30 


W.  Evans, 
Jas.  Reed, 
Joel  Post, 
llobert  Parker, 


"W.  Evans,  bro't  down 
R.  Parker,         n 


1867. 

4 

20 
182 

18 
60 

June 

30 
4 

30 

280 



20 

60 

W.  Evans,  car.  down, 
Jas.  Reed's  acct.. 
Cash  of  Joel  Post,  200. 
R.  Parker,  car.  down, 


20 

4 

182 

18 

60 

280 

1.  In  every  business  there  are  frequently  small  sales  and  unsettled  balances  due  from  persons  with  whom  we  expect  to  have 

no  farther  dealings.  The  simplest  and  easiest  way  to  keep  account  of  such  transactions  is  under  a  Sundry  Drs.  head. 
Enter  the  name,  sum,  date,  Ac,  as  above,  taking  care  to  index  each  individual's  name,  as  you  perceive  we  have  done — 
refer  to  the  index,  and  see. 

2.  When  payment  is  made,  it  comes  through  the  books  as  far  as  the  Journal,  as  though  the  party  had  an  open  account.    By 

the  index,  the  name  is  found  on  this  account,  post  it  like  Joel  Post's  entry,  4th  June,  above,  on  the  same  line  opposite  the 
debit,  and  it  settles  the  transaction. 

3.  You  must  recollect,  however,  that  you  cannot  make  more  than  one  debit  and  one  credit  to  each  individual.    If  the  trans- 

actions exceed  this,  you  must  re-page  the  party's  name  in  the  index,  and  transfer,  through  the  Day  Book,  the  amount 
from  this  account  to  his  private  account,  as  we  have  done  above  with  J.  Heed. 


SUNDRY 


CREDITORS. 


1867. 

June 


T.  Freeman  car.  down 
Cash  paid  J.  Haven, 


'   5 

72 
28 

1867. 

June 

June 

i 

10 
20 

30 

100 

Due  T.  Freeman, 
//    Jas.  Haven, 


5 

72 
28 

100 

72 

1 
i 

Due  T.  Freeman,  bro't 
down, 


1.  Tliis  account  is  managed  in  all  respects  like  the  last  one,  except  that  the  entries  first  appear  at  the  credit  side. 

2.  When  a  purchase  is  made  of  a  party  with  whom  you  have  not  an  account,  and  intend  to  pay  it  in  a  short  time,  let  the  trans- 

actions, as  those  in  the  last  account,  come  through  the  books  as  far  as  the  Journal,  in  the  usual  way,  then  post  the 
name,  amount,  &c.,  to  this  account,  recollecting  to  index  the  name.    When  payment  is  made,  it  must  be  always  placed 
on  the  Dr.  side,  on  the  same  line  with  the  credit,  as  with  Haven's  entry  above. 
8.  These  two  accounts  close  by  filling  up  the  vacant  spaces  in  red,  as  above,  recapitulating  all  the  names  and  amounts  in  the 
new  account. 


JAMES 


REED. 


June  4 


Sundry  Drs.  acct. 
Mdse.,  Z 


4 

182 
96 

278 

1867. 

June 

4 

30 

i 

1 

Cash, 

Suspended  List, 


4 
2 

100 

178 

278 

1 

1 

1.  This  account  was  first  commenced  under  the  Sundry  Drs.  head,  but  finding  he  was  going  to  deal  farther  with  us,  we  re- 
indexed  his  name,  and  opened  a  private  account  with  him.  Tliis  will  frequently  occur  in  business,  but,  as  the  name  is 
already  in  the  index,  the  trouble  is  trifling  compared  with  the  old-fashioned  plan  of  keeping  a  petty  Ledger  for  such 
accounts. 


COMMISSION 


ACCOUNT. 


1867. 

June 


30  Profit  &  Loss, 


f.  2 


2 

164 
164 

— 

1867. 

May 
June 

1 

1 

23 

10 

1 

Cope  &  Sons, 
Commission  Sales,  jgi. 


3 

5 

■27 
137 

164 

i 

170 


TEIAL  SHEET,  June  30,  1867, 


Drs.  Grs. 


P.  Duff  . 
W.  Gordon 
James  Carter  . 
S.  Gaynor    . 

// 
Cash    . 

Merchandise    . 
T.  P.  Cope  &  Sons 
Wm.  Hay 
A.  Stuart  &  Co.    . 
James  Day 

II 
Edward  Pryor 
Bills  Receivable  . 
Bills  Payable  . 
City  Bank    . 

II    . 
Profit  &  Loss 
Expense  Account 
Interest  Account 
Commission  Sales 
Robert  Banks 
Robert  Butler 

II 
Duff  &  Gordon 
Sundry  Debtors    . 
Sundry  Creditors 
James  Reed 
Commission     . 
Private  Ledger    . 


fol 


1.  By  comparing  these  footings  with  those  of  the  Day«Book  and  Journal,  and  finding 
them  to  agree,  we  have  direct  and  indisputable  evidence  that  no  omissions  can  have  occurred 
either  in  journalizing  or  posting.  Whereas  the  common  Trial  Balance  affords  no  security 
against  any  errors  but  such  as  disturb  its  equilibrium.  And  it  is  well  known  that  omissions 
deeply  affecting  the  interest  of  the  Merchant  frequently  take  place  between  his  Sales  Book, 
or  his  Day-Book  and  his  Journal,  which  the  method  we  are  now  introducing  affords  the 
means,  and  the  only  means,  of  detecting  with  certainty. — Note  4,  p.  142. 

2.  There  are  so  many  obvious  advantages  in  taking  a  monthly  trial,  that  it  is  strongly 
recommended  in  business.  On  the  next  page,  I  have  given  a  form,  by  which,  when  the 
titles  are  once  written,  the  amounts  only  require  to  be  afterwards  inserted  until  the  end  of 
the  year. 


C  \  8 « A  r> 

Of  THE 


VNIVERSfTY 


171 


AN  IMPEOVED  POEM  OP  MONTHLY  TEIAL  SHEET  POE  1867. 

Accounts. 

1 

1   Des.       April.      Crs. 

Drs.       Mat.       Crs. 

DBS.       June.       Ces. 

P.  Duff, 

90 

500 

42 

W.  Gordon, 

25 

76 

50 

James  Carter, 

978 

50 

10 

25 

800 

Samuel  Gaynor, 

488 

91 

82 

417 

Cash, 

2 

7775 

75 

7727 

60 

825 

50 

864 

3149 

25 

2939 

Merchandise, 

6014 

50 

2372 

25 

2629 

1547 

25 

2564 

. 

2387 

T.  P.  Cope  &  Sons, 

504 

504 

1079 

2300 

1221 

Wm.  Hay, 

200 

2694 

40 

2200 

60 

168 

A.  Stuart  &  Co. 

291 

291 

James  Day, 

3 

28 

68 

50 

28 

18 

Edward  Pryor, 

63 

20 

200 

64 

183 

200 

Bills  Receivable, 

1091 

■ 

781 

375 

50 

630 

496 

50 

Bills  Payable, 

704 

704 

291 

291 

1221 

City  Bank, 

4 

6550 

703 

65 

5678 

35 

7037 

35 

2141 

95 

2851 

20 

Expense  Account, 

3 

60 

345 

80 

Interest  Account, 

20 

85 

4 

55 

55 

Commission  Sales, 

5 

25 

50 

360 

576 

2740 

2920 

Robert  Banks, 

20 

46 

50 

198 

345 

R.  Butler, 

596 

50 

100 

577 

50 

496 

50 

100 

Private  Ledger, 

1 

9000 

April     . 

25156 

75 

25156 

75 

Profit  &  Loss, 

4 

20 

150 

Duff  &  Gordon, 

5 

45 

41 

25 

Sundry  Debtors, 

6 

220 

60 

200 

Commission, 

'  27 

137 

May        •.      .     .      • 

14868 

60 

14868 

60 

Sundry  Creditors', 

6 

28 

100 

James  Reed, 

278 

100 

June       .... 

13911 

76 

13911 

75 

1.  Tlie  above  form  of  monthly  trial  will  require  medinm  or  royal  paper,  ruled  with  six  debit  and  credit  columns  on  each  page. 

This  will  enable  the  book-keeper  to  take  his  trial  in  about  half  the  usual  time,  inasmuch  as  the  titles  once  written  serve 
for  the  whole  year. 

2.  As  our  Journal  is  not  posted  in  monthly  periods,  you  cannot  find  the  cash  and  merchandise  amounts  for  the  above  trial  from 

the  Ledger,  but  you  can  procure  them  from  the  Sales,  Invoice,  and  Cash  Books ;  and  I  have  given  the  monthly  totals  in 
small  figures  in  the  margin  of  the  Journal,  so  that  you  can  see  when  your  trial  agrees  with  that  book. 

3.  Before  making  out  each  month  of  this  sheet,  go  over  the  Ledger,  carefully  adding  up  the  month's  business,  inserting  it  in 

pencil  in  the  margin  of  each  account :  from  these  marginal  figures  the  trial  is  filled  up. 
i-  To  facilitate  this  operation,  the  author  originally  had  his  Ledger  ruled  with  two  «ets  of  money  columns  on  each  side,  so  that 
every  account  could  have  each  month's  business  extended  in  monthly  sections,  like  our  Cash  Book.    But  some  of  his 
mercantile  friends  expressing  a  strong  dislike  to  this  manner  of  ruling  the  Ledger,  he  has  been  induced,  in  deference  to 
their  opinion,  to  abandon  it,  although  his  own  opinion  of  its  practical  utility  remains  unchanged. 

5.  Want  of  time  is  the  greatest  objection  to  the  monthly  trial,  but  it  is  believed,  that  if  a  proper  estimate  is  made  of  the  time 

usually  required  for  correcting  books  at  the  end  of  the  year,  the  advantage  will  often  be  in  favor  of  the  monthly  trial, 
which  gives  timely  notice  of  the  existence  of  error,  and  but  a  short  space  of  business  to  examine  in  order  to  find  it. 

6.  In  conclusion  we  may  also  name  another  advantage  of  the  monthly  trial.    When  it  always  comes  out  correct,  there  is  not 

any  necessity  of  ever  making  out  a  Balance  Account.  Dividends  can  be  safely  made  upon  the  Profit  &  Loss  Account, 
after  closing  into  it  all  accounts  representing  gain  or  loss.  Indeed,  this  may  be  done  in  any  case  where  there  is  satisfac- 
tory evidence  of  the  entire  correctness  of  the  books;  but,  as  all  experienced  accountants  know,  in  the  ordinary  mode  of 
keeping  books,  the  Balance  Account  affords  the  only  satisfactory  evidence  of  this.  When  a  dividend  is  made,  and  a  net 
capital  exhibited  in  the  Stock  or  Partners'  Accounts,  the  Balance  Account  must  at  the  same  time  be  shown,  as  evidence 
of  the  existence  of  effects  to  represent  that  capital. 


172 


THE   PRIVATE  LEDGER. 


1.  The  object  of  this  book  having  been  explained,  Note  4,  p.  149,  we  have  now  only  to 
observe,  that,  although  it  is,  in  business  practice,  always  a  separate  book,  it  must  be  dealt 
with  as  though  it  formed  part  of  the  other  Ledger.  After  the  accounts  are  opened,  no 
public  business  can  require  any  reference  to  it.  Indeed,  no  reference  is  ever  required  to  it, 
except  at  the  time  of  closing  the  books  or  taking  the  trial.  The  sum  of  its  footings  must 
appear  upon  the  trial  as  you  see  on  p.  171.  At  the  time  of  closing,  the  transfers  are  all 
made  from  the  public  Ledger  to  Profit  &  Loss,  Suspended  List,  and  Balance,  as  if  these 
accounts  were  opened  in  the  same  book.  If  the  dividend  is  made  without  making  out  a 
balance  account,  as  suggested  in  Note  6,  p.  172,  the  course  to  be  followed  with  the  other 
accounts  in  this  book  will  still  be  the  same  as  it  now  is. 


Dr. 


(Stock  Acct.) 


DUFF. 


Cr. 


1867. 

Apr. 


Sundries 
Cash, 
Junel  30!  Profit  &  Loss, 


Ledg.  A, 


Net  Capital  at  date 


2884i47 

115i53 

1400153 


4400153 


W. 


(Stock  Acctv) 


GORDON. 


1867. 

Apr. 
June 


Sundries,  Ledg.  A,   f. 
Cash,  3000. 

Profit  &  Loss,  f. 

Net  Capital  at  date, 


1717158 

1282142 
1400153 


4400|53 


JAMES 


(Stock  Acct.) 


CARTER. 


Apr. 
June 


30 


Sundries,  Ledg.  A,   f. 

Cash, 

J.  Carter's  Pr.  acct.  aooo. 

Profit  &  Loss,  f. 

Net  Capital  at  date, 


3650 
2000' 

963,50 
1400154 


4400  54 


1.  We  have,  above,  carried  the  whole  amount  of  each  partner's  dividend  to  his  credit  in 
Stock  account,  but  our  attentive  student  no  doubt  recollects  what  we  stated,  Note  5,  p.  129, 
and  he  will  therefore  readily  understand,  that  the  partners  may  order  various  other  disposi- 
tions of  their  dividends;  for  instance,  they  may  agree  to  carry  a  certain  percentage  on  their 
capital  to  the  credit  of  their  private  accounts  to  cover  sums  that  they  have  withdrawn,  and 
allow  the  remainder  to  pass  to  the  credit  of  their  Stock  accounts  to  increase  their  capital. 
They  may  think  proper  to  order  the  whole  amount  to  the  credit  of  their  private  accounts^ 
cr  draw  the  cash  for  it  as  soon  as  the  amount  is  known,  as  in  banks  and  joint  stock  com- 
\  anies. 

173 


Dr. 


MDSE. 


ACCT. 


Cr. 


1867. 

June 


From  Public  Ledg.,    f. 
Profit  &  Loss, 


Balance, 


11207  bo 

4899 


|l610Gi50 
9800 


1867. 

June  30 


From  Public  Ledg 
Balance, 


2     6306  50 
"^     9800 

.6106  )0 


1.  The  balance  will  always  be  brought  down  upon  this  Ledger.    Every  time  the  Ledger  is  balanced,  the  total  postings  to  tho 
account  on  the  Public  Ledger  are  transferred  by  double  balance  as  above. 


PROFIT 


& 


LOSS. 


1867. 

June  130 


Expense,  Public  L. 
Suspended  List,   loe 
P.  Buff,        i  n/g. 
W.  Gordon,  i    u 
J.  Carter,     i    n 


1867. 

4 

408 

June 

30 

2 

655 

SO 

1 

1400 

33 

1 

1400 

S3 

1 

1400 

S4 
10 

5265 

Pr.  &  Loss,  Pub.  L 
Merchandise, 
Interest, 
Commission, 


See  Notes  4  and  5,  p.  130,  and  Note  1,  p.  173. 

The  above  gain  is  carried  to  the  partners'  stock  accounts. 


BALANCE 


ACCOUNT. 


1867. 

1867. 

June 

50 

W.  Gordon,            fol. 

1 

69 

16 

June 

30 

P.  Duff,                  fol. 

1 

421 

)1 

James  Carter, 

188 

r5 

Wm.  Hay, 

2 

402 

to 

Samuel  Gaynor, 

.    62 

Bills  Payable, 

3 

1221 

Cash, 

2 

219 

)0 

Commission  Sales, 

5 

3856 

Mdse., 

9800 

K.  Banks, 

80 

)0 

Edward  Pryor, 

3 

162 

Sundry  Crs., 

6 

72 

Bills  Receivable, 

1630 

P.  Buff,  n.  c. 

1 

4400 

)3 

City  Bank, 

4 

4278 

10 

• 

W.  Gordon,  n.  c, 

4400 

)3 

Commission  Sales, 

5 

2765 

)0 

James  Carter,  n.  c, 

4400 

)4 

Sundry  Drs.,      19255.41 

6 

i      80 

[9255 

a 

.9255 

tl 

~ 

SUSPENDED 


ACCOUNTS. 


1867. 

June  BO 


Robert  Butler, 
James  Ptced, 


f. 

655.60 


5 

6 

477 
178 

)0 

ISffT. 

June 

50 

655 

t 

Profit  &  Loss,         fol. 

2 

655 

>a 

655 

SO 

■ 

See  Notes  1  to  3  Suspended  List,  p.  134. 

We  have  only  to  remark  further,  that  if  these  accounts  have  been  closed,  you  will  allow  them  to  remain  so,  until  you  nv 
ceive  a  payment  upon. them.  When  this  takes  place  the  account  is  to  be  re-opened  with  a  debit  for  the  suspended  bal- 
ance; but  this  cannot  be  done  upon  the  face  of  the  Ledger.  Profit  &  Loss  having  been  debited  for  the  amount  at  the 
hist  balance,  must  now  be  credited  for  it  upon  the  Day  Book,  making  the  individual  Dr.  To  Profit  &  Loss  for  balance  per 
Suspended  List.  It  may,  perhaps,  be  asked,  why  not  carry  such  payments  to  the  credit  of  Profit  &  Loss,  without  re- 
opening these  accounts?  This  will  not  do,  because  these  individuals'  accounts  must  record  the  payments  they  have 
made  upon  them. 


174 


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175 


ON  PARTNERSHIP  SETTLEMENTS. 

DIRECTIONS    FOR   CONDUCTING   THE    BOOKS    AFTER   THE    DISSOLUTION    OF   THE    FIRM,    AND    RECORDING    THB 
TRANSACTIONS    FOR   EFFECTING   THE    SETTLEMENT   AND    FINAL   CLOSURE    OF    THEM. 

When  a  concern  is  dissolved,  the  books  being  generally  left  in  tbe  hands  of  one  or  more 
of  the  firm  for  the  purpose  of  settling  up,  each  of  the  partners  should  be  provided  with  a 
Balance  Sheet,  similar  to  that  on  the  preceding  page.  From  this  Balance  Sheet  each  re- 
tiring partner  makes  the  proper  Journal  entry  in  his  own  books.  If  the  remaining  partners 
continue  the  business  in  their  own  name,  unless  they  have  bought  out  the  interest  of  the 
retired  partners,  they  should  make  no  use  of  any  of  its  books  to  record  transactions  relating 
to  their  own  business. 

To  those  who  understand  the  preceding  set  of  books,  the  following  Exercises  will  fully 
explain  the  subject.  The  student  should  write  out  his  own  answers  before  he  consults  those 
in  our  Key. 

EXERCISES   ON  WINDING  UP   PARTNERSHIP  BOOKS. 

1.  On  the  30th  June,  the  day  on  which  the  preceding  books  were  balanced,  suppose  that 
Gordon  and  Carter  retire  from  the  firm,  and  leave  the  books  in  the  hands  of  Dufi"  for  settle- 
ment :  what  entry  will  each  retiring  partner  make  in  his  own  private  books  in  conformity 
with  the  Balance  Sheet  of  the  late  firm,  supposing  they  had  no  previous  entry  in  their  private 
books  of  their  investment  in  the  firm  ? 

2.  What  entry  will  Duff  make  in  his  books  ? 

3.  The  Bank  Deposit,  Cash  in  hand,  and  Bills  Receivable,  being  available  property,  what 
entry  will  Duff  make  of  the  same  in  his  books  on  receipt  of  them  ? 

4.  What  entry  will  he  make  for  the  same  in  the  books  of  the  firm  ? 

5.  What  entry  for  the  Merchandise  in  hand  and  debts  due  the  firm  ? 

6.  What  entry  in  his  own  books  when  he  makes  a  payment  of  $1000  in  cash  to  Gordon, 
one  of  the  retired  partners,  on  account  of  his  Stock  ? 

7.  What  entry  for  the  same  transaction  in  the  books  of  the  firm  ? 

8.  What  will  be  Gordon's  entry  when  he  receives  the  money  ? 

9.  What  will  be  Duff's  entry,  in  his  own  books,  when  he  sells  Merchandise  belonging  to 
the  firm  for  cash,  $2000  ?      . 

10.  What  entry  in  the  books  of  the  firm  for  this  sale  ? 

11.  What  entry  in  the  firm's  books  if  he  sell  James  Carter,  one  of  the  retired  partners, 
$3000  worth  of  Merchandise,  on  account  of  the  balance  due  him  by  the  firm  ? 

12.  What  entry  for  this  sale  in  Duff's  private  books? 

13.  What  entry  will  Carter  make  in  his  books  for  the  same  ? 

14.  What  entry  in  his  own  books,  when  Duff  collects  cash. due  the  firm;  say  the  amount 
of  S.  Gaynor's  account  ? 

15.  How  will  the  same  be  entered  in  the  books  of  the  firm  ? 

16.  What  entry  in  his  own  books  when  he  pays,  cash,  a  debt  due  by  the  firm;  say  the 
balance  due  Robert  Banks  ? 

17.  What  entry  for  the  same  in  the  books  of  the  firm  ? 

18.  When  the  merchandise  belonging  to  the  firm  is  all  disposed  of,  how  is  the  account  to 
be  closed  upon  the  books  of  the  firm  ? 

19.  If  any  of  the  personal  accounts  due  the  firm  are  wholly  or  partially  lost,  what  entry 
in  the  books  of  the  firm  at  the  final  settlement  ? 

20.  When  any  of  the  suspended  accounts,  say  Robert  Butler's,  is  collected  in  cash,  what 
entry  in  the  books  of  the  firm  ? 

21.  When  the  effects  of  the  firm  are  all  made  available,  how  is  the  Profit  &  Loss  account 
to  be  finally  closed  on  their  books  ? 

22.  How  will  the  partners'  accounts  be  finally  closed  on  the  books  of  the  firm  ? 

23.  What  entry  will  each  partner  make  on  his  own  books  to  close  the  account  with  the 
firm,  after  the  effects  are  all  paid  over  ? 

176 


PARTNERSHIP  SETTLEMENTS.— PART  II. 

The  foregoing  exercises  illustrate  the  course  to  be  pursued  when  a  firm  is  dissolved  with 
a  view  to  dividing  the  effects  only  as  they  are  collected  and  made  available.  But  it  will 
always  be  found  more  convenient  and  advantageous  for  all  parties,  if  the  retiring  partners 
agree  upon  a  stipulated  allowance  for  bad  debts,  expense  of  collecting,  &c.  In  this  case, 
the  books  and  all  theefiects  of  the  firm  become  the  property  of  the  remaining  partners,  and 
they  continue  the  business  in  tlie  same  books  as  before  the  dissolution }  at  the  same  time 
becoming  liable  to  the  retired  partners,  in  the  terms  agreed  upon,  for  the  balances  they  have 
accepted  for  their  interest  in  the  house. 

24.  Suppose  Gordon  and  Carter  retire,  and  Duff  takes  the  effects,  books,  and  the  whole  busi- 

ness into  his  own  hands,  assuming  all  the  liabilities  of  the  firm,  as  also  the  balances 
due  the  retiring  partners,  less  five  per  ct.  off  their  last  dividend,  to  cover  bad  debts, 
what  entry  will  he  make  upon  the  books  of  this  discount  ? 

25.  What  entry  will  Carter  and  Gordon  make  upon  their  books  to  show  the  transaction  ? 

After  this,  Duff  debits  them  as  he  pays  them  off,  in  cash,  merchandise,  &c. ;  they  at  the 
same  time  making  conforming  entries  in  their  books. 

In  the  above  exercises,  we  have  made  no  allusion  to  the  open  consignment  accounts.  In 
every  house  doing  a  commission  business  there  must  always  be  a  number  of  consignments 
on  hand,  partly  sold  at  the  time  of  closing  the  books.  When  a  balance  sheet  is  made  up, 
either  for  the  purpose  of  admitting  a  new  partner,  or  settling  with  a  retiring  one,  it  is  obvious 
that  the  commission  upon  these  sales,  as  far  as  they  are  effected,  must  be  taken  into  account ; 
and  to  do  so,  the  commission,  so  far  earned,  must  be  carried  to  the  credit  of  the  commission 
account.  In  doing  so,  some  other  account  must  be  debited  for  the  same  amount :  now,  the 
question  is,  what  is  the  proper  account  to  debit?  It  would  be  manifestly  improper  to  debit 
the  sales  account  without  rendering  the  owner  a  statement,  and  it  is  by  no  means  proper  nor 
desirable  to  render  him  an  account,  unless  he  calls  for  it,  until  the  sales  are  completed.  • 

The  commission  thus  earned,  being  part  of  the  effects  of  the  parties  who  have  thus  far 
conducted  the  sales,  their  Balance  account  must  be  debited  for  it.  To  make  Balance  account 
Dr.  to  Commission,  is  a  peculiar  and  somewhat  anomalous  entry;  and  it  will,  perhaps,  be 
asked,  what  effects  have  we  got  to  represent  it  ?  To  this  we  reply,  that  the  entry  represents 
our  claim  against  this  person's  sales ;  and  this  claim  is  of  the  same  nature  as  that  against 
Pryor,  or  any  other  individual.  The  only  difference  is,  that  we  do  not,  just  now,  for  the 
reasons  above  named,  place  the  amount  to  the  debit  of  the  sales. 

Now,  it  must  be  recollected,  that  the  Commission  account  closes  Bi/  Balance  and  to  Profit 
&  Loss;  and,  like  all  other  balance-closing  entries,  this  one  must  be  brought  down  into  new 
account ;  and  when  the  account  afterwards  receives  its  credit  for  the  commission  on  the  sales, 
when  completed,  the  effect  of  this  debit  entry,  so  brought  down,  will  be  to  extinguish  its 
amount  out  of  the  credits  of  the  account  at  the  next  dividend,  thus  preventing  a  new  dividend 
of  that  portion  of  the  commission  accounted  for  in  the  old  account. 

When  dividends  are  made  as  we  have  suggested,  note  6,  p.  172,  without  making  up  a 
Balance  account,  then  our  Day  Book  entry  will  be,. Commission  new  account.  Dr.  To  old 
account  After  posting  the  credit  entry,  close  the  account  into  Profit  &  Loss ;  and,  after 
the  closing  lines  are  drawn,  post  the  debit  entry. 

It  is  to  be  observed  that,  in  business,  the  entries  we  are  now  considering  will  often  have 
to  embrace  the  commission  upon  a  large  number  of  different  accounts.  A  Day  Book  entry, 
specifying  all  the  particulars,  will,  therefore,  always  be  required  in  form  something  like  the 
following : — 

Balance  Account  Dr.  To  Commission. 

For  commission  5  per  ct.  on  A.  B.'s  sales  effected  to  date,  S500.  .  .  825. 

'/  "         2^     w      on  C.  D.'s      ff  II  II       2000.  .  .       50. 

"  II         5       //      on  E.  F.'s      //  ;i  ii      3400.  .  .  170.     8245. 

It  may  be  proper  to  remark,  that  this  adjustment  of  the  commission  due  upon  the  sales 
thus  far  effected  makes  no  change  in  the  disposition  of  the  balance  of  the  account.      The 
differences  between  the  sales  and  the  charges  must  appear  in  the  balance  sheet,  as  usual. 
M  177 


DUFF'S  BOOK-KEEPING. 

I  may  also  observe,  that  I  am  now  treating  the  subject  of  Partnership  Settlements  for 
professional  readers  only;  persons  not  well  versed  in  the  science  of  accounts  will  not,  there- 
fore, find  it  intelligible  until  they  make  themselves  acquainted  with  the  principles  of  the  art, 
as  explained  in  the  preceding  part  of  this  work.  The  experienced  book-keeper  will,  how- 
ever, no  doubt,  perceive  that  this  mode  of  adjusting  the  commission  effects  all  that  is  neces- 
sary for  making  and  recording  a  dividend,  without  disturbing  a  figure  in  the  consignment 
accounts — avoiding  the  awkward  expedient  of  either  making  a  partial  charge  of  commission 
in  the  account,  or  rendering  a  statement  of  it,  before  the  sales  are  completed. 

Such  of  our  readers  as  understand  the  application  of  this  principle  to  the  Consignment 
accounts,  will  readily  perceive  that  it  may  be,  at  any  time,  conveniently  applied  under  similar 
circumstances,  to  the  Interest  or  Profit  &  Loss  account,  or  any  of  its  branches. 

In  consequence  of  the  unexpected  retiring  of  a  partner,  between  the  periods  of  annual  or 
semi-annual  settlement  of  the  books,  a  balance  sheet  and  settlement  may  require  to  be  made 
with  the  retiring  partner,  when  it  would  be  extremely  inconvenient  and  irregular  to  present 
your  accounts  to  your  mercantile  neighbors  and  correspondents  for  settlement.  In  extensive 
houses,  where  interest  is  allowed  and  charged  on  book  accounts,  there  will  be  many  accounts 
upon  which  interest  will  be  running,  some  in  favor  of  the  house,  and  some  against  it.  We 
now  propose  to  show  by  a  short  pro  forma  statement,  with  what  ease  and  simplicity  interest 
upon  any  number  of  accounts,  notes,  bonds,  &c.,  may  be  adjusted  in  a  partnership  settlement 
without  disturbing  or  disfiguring  the  accounts.  It  must  be  recollected,  that  such  statements 
must  be  always  made  upon  the  Pay  Book,  with  full  particulars  for  future  reference,  if 
required.     The  form  will  be  something  like  the  following : — 

Balance  Pr.  To  Interest  Account. 
For  balance  of  interest  due  us  on  Cox  &  Martin's  account  to  date,  $68. 
ff  n  on  G.  Haven's  tr  122. 

II  II  on  Henry  Noble's  if  140. 

a  II  on  John  Manly's  note    ,     .         .60.     390. 

Less  balance  of  interest  due  G.  W.  Smith  on  account    .         .  70. 

ff  »  JMartin  Rowley  on  bond  .         .       40.     110. 

Balance  to  credit  of  interest   .  280. 

This  entry  is  posted  to  the  Balance  and  Interest  accounts,  as  directed  with  the  Commission 
account  last  page.  But  no  entry  is  now  made  at  the  accounts  of  any  of  the  above  parties  for 
these  amounts  of  interest.  Their  accounts  are  carried  on  without  interruption  until  the  next 
period  of  settlement,  when  they  will  have  an  entry  for  the  interest  for  the  whole  period,  as 
if  no  adjustment  of  this  kind  had  now  taken  place  between  the  partners;  and  though  the 
interest  account  will  then  get  credit  for  the  whole  amount  computed  upon  the  accounts,  the 
balance  entry,  now  brought  down  from  the  old  account,  will  extinguish  that  amount  of  it, 
leaving  only  what  will  have  accrued  after  the  present  settlement  for  a  new  dividend. 

Our  attentive  reader,  no  doubt,  already  perceives  that  this  principle  may  be  applied  to  any 
account  which  we  do  not  wish  to  disturb  at  the  time  of  settling  or  balancing  the  books.  For 
instance :  the  1st  Co.  Sales  or  Ship  Roscoe  and  owners,  p.  109,  may  be  dealt  with  in  the 
same  way,  by  making  Balance  Pr.  to  Profit  &  Loss  for  our  share  of  the  gain  to  date.  Then 
Profit  &  Loss  would  re-open  as  before  stated,  and  the  ship's  account  would  remain  undisturbed 
until  the  time  of  making?  the  dividend. 


178 


ON  PARTNERSHIP  SETTLEMENTS. 


ox  KEEPINa  PARTNERSHIP  BOOKS  WITH  A  STOCK  ACCOUNT. 

Though  the  author  considers  the  manner  of  keeping  Partnership  Books  exemplified  in 
the  preceding  sets,  the  best  adapted  for  general  business  in  private  co-partnership,  yet  in 
some  large  firms,  particularly  manufacturing  establishments,  where  there  are  a  number  of 
silent  partners,  it  will  be  found  more  convenient  to  place  the  whole  capital  at  the  credit  of  a 
STOCK  ACCOUNT,  as  is  done  in  Banks  and  other  Joint-Stock  Companies.  In  this  case,  the 
amount  of  capital  invested  by  each  partner  is  shown  by  receipts  or  other  private  docu- 
ments. All  the  partners' transactions  with  the  concern  are  recorded  precisely  as  they  are 
at  the  partners'  private  accounts  in  the  preceding  Ledger;  and  the  opening  Journal  entry 
will  be  the  same  in  all  the  debits  and  credits,  with  the  exception  of  the  $3000  carried  to  the 
credit  of  each  partner's  stock  account.  This  will  appear  in  one  sum  ($9000)  at  the  credit  of 
the  Stock  Account ;  and  no  separate  stock  account  will  be  opened  for  each  partner.  Take, 
for  illustration,  the  first,  second,  and  fourth  entries  of  our  Journal,  p.  157,  and  embrace  them 
in  one  entry,  viz. 


Sundries  To  Sundries 

.      $10272. 

Cash 

.     $5998. 

Merchandise 

3217.50 

E.  Pryor           .... 

2. 

S.  Gaynor     .... 

91. 

James  Carter    .... 

963.50 

To  T.  P.  Cope  &  Sons    . 

. 

504. 

n   William  Hay 

. 

200. 

//   James  Day 

*        .         .        . 

68. 

n    P.  Duff       ■  . 

. 

500. 

//    Stock 

. 

9000. 

$4201.60 


1400.53 
1400.53 
1400.54 


Carrying  the  whole  capital  to  the  credit  of  the  Stock  account,  as  if  it  were  an  individual 
business. 

As  we  have  before  remarked,  the  disposition  of  the  Profits  is  altogether  a  matter  of  private 
agreement.     If  it  be  agreed  to  carry  the  whole  profit  to  Stock,  to  increase  the  capital,  the 
Profit  &  Loss  will  close  thus — see  p.  174. 

Profit  &  Loss  To  Stock  for  net  gain 
If  it  be  arranged  that  the  profits  are  to  be  divided : 

Profit  &  Loss  To  Sundries  .        .  $4201.60 

To  P.  Duff  for  his  I  net  gain    .... 

n   W.  Gordon       ...... 

//   J.  Carter  //  ..... 

Or,  if  they  agree  to  divide,  say  10  per  cent,  upon  their  capital,  and  allow  the  surplus  to 
increase  the  stock — 10  per  cent,  on  $9000  is  900. 

Profit  &  Loss  To  Sundries        .        .        $4201.60 

To  P.  Duff  for  his  10  per  cent,  dividend  -    .         .       300. 
n    W.  Gordon  ft  .  .  300. 

II  J.  Carter  »  .         .       300. 

//   Stock  for  surplus  profits      ....         3301.60 

At  the  time  of  dissolution,  or  any  other  time,  if  desired,  the  stock  may  be  closed  into  the 
partners'  accounts,  thus : 

Stock  To  Sundries,  to  close  account     .     $13201.60 

To  P.  Duff  for  his  i  capital       ....       4400.53 

//   W.  Gordon         h  ....  4400.53 

//   J.  Carter  // 4400.54 

The  partners'  accounts  will  then  show  what  is  due  them  by  the  firm,  or  what  they  have 
to  refund,  if  any  of  them  have  overdrawn. 

in 


DUFF'S   BOOK-KEEPING. 


ON  ADJUSTING  INTEREST  ON  PARTNERS'  ACCOUNTS. 

The  author  left  the  exemplification  of  this  matter  out  of  his  Partnership  Books,  believing 
that  he  could  give  a  more  comprehensive  explanation  of  it  in  a  separate  section^  than  upon 
a  Day-Book. 

Many  book-keepers  cast  interest  upon  each  partner's  capital,  and,  after  deducting  from 
this,  interest  on  the  sums  withdrawn,  carry  the  balance  to  each  respective  partner's  credit, 
and  to  the  debit  of  the  Interest  account.  Although  the  results  arising  out  of  this  disposition 
of  the  interest  will  all  come  out  perfectly  correct,  yet  it  gives  such  a  distorted  appearance  to 
the  Interest  account,  that  we  think  the  following  adjustment  will  be  preferred  by  all  good 
accountants.  It  will  be  observed  that  the  interest  is  adjusted  between  the  partners'  accounts 
without  disturbing  the  Interest  account,  which  should  embrace  nothing  but  the  interest  of 
business  transacted  with  the  firm. 

Suppose  Hay  &  Gordon,  partners,  to  share  equally  in  the  gain  or  loss,  and  the  interest 
upon  Gordon's  capital  to  be  .......  $240. 

Less  interest  on  sums  withdrawn        .....  80.     Balance  160. 

Interest  upon  Hay's  capital  .         .         .         .         .         .     150. 

Less  interest  on  sums  withdrawn        .....  50.     Balance  100. 


Balance  of  interest  in  favor  of  Gordon     .....     60. 

Here  we  cancel  the  $100  interest  due  to  Hay,  and  allow  it  to  extinguish  that  amount  out 
of  the  $160  due  to  Gordon.  Then,  by  a  little  reflection,  the  reader  will  perceive,  that  if  he 
credits  Gordon  for  the  remaining  $60,  and  debits  the  Interest  account,  Gordon  will  himself 
have  afterwards  to  pay,  out  of  his  share  of  the  profits,  one-half  of  this  $60,  and  Hay  the 
other  half:  then,  if  we  make 

Hay  Br.  To  Gordon  for  half  balance  of  Interest,  $30. 

the  result  will  be  correct.  It  will  leave  both  partners^  accounts  in  the  same  position  as  if 
they  had  been  credited  for  their  respective  balances  of  interest  above  stated. 

When  there  are  more  than  two  partners  a  different  operation  is  required.  The  following 
rule  will  serve  for  any  number  : — 

Rule. — Add  together  the  balances  of  interest  due  to  each  partner  :  divide  the  sum  by 
the  number  of  partners;  the  quotient  is  the  average,  or  amount,  of  interest  that  would  be 
due  to  each  partner,  provided  they  were  equally  interested.  Therefore,  the  balances  ABOVE 
the  average  must  be  placed  to  the  credit  of  their  respective  owners,  and  those  below  it 
must  appear  at  the  debit  of  their  owners.  The  sum  of  the  differences  above,  and  that  of 
the  differences  below,  the  average,  will  always  equal  each  other,  as  will  be  seen  by  the 
following  illustration  :  — 

Suppose  the  bal.  of  Interest  due  Duff    $650  —  394.  Bal.  for  Duff's  Cr.  256. 

II                      //     Gordon  490  — 394.  //         Gordon  Cr.    96.  Total  Crs.  352. 

//  //     Hay      250.  

//  //     Banks  186. 

Number  of  partners     ..        .     4)1576. 

""394  —  186.  Bal.  for  Banks' Debit  208. 

And         .         .         394  —  250.  //         Hay's      //     144.  Total  Drs.  352. 

The  Journal  entry  will  be. 

Sundries  To  Sundries  $352. 
Banks,  for  balance  of  interest  on  his  capital  .         .         .     $208. 

Hay,  for         n  ii  it  ...  144. 

To  Duff,  for  balance  of  interest  due  him  on  his  capital        .  •        .      256. 
//   Gordon,  for  //  //  n  .         .  96. 

180 


ON  PARTNERSHIP   SETTLEMENTS. 

The  principle  just  applied  to  the  settlement  of  partners'  interest,  will  often  be  found  useful 
in  arranging  other  matters  in  partnership  settlements.  We  have  known  an  expert  account- 
ant not  a  little  perplexed  to  settle  a  matter  similar  to  the  following. 

George  Draper,  William  Stone,  James  Best,  and  Charles  Hill,  having  lately  dissolved  their 
firm,  sold  off  all  their  effects,  divided  the  proceeds,  and  find  their  accounts  standing  as  follows : — 

There  is  a  balance  due  to  Draper  of  $460,  to  Stone,  $270,  to  Best,  $184,  to  Hill,  $430. 
Their  shares  in  the  business  were  each  one-fourth,  their  books  were  kept  by  Single  Entry, 
and  there  are  no  farther  effects  to  divide.  Required  the  settlement  of  the  matter  between 
the  partners. 


Balance  due  Draper  is 
//             Stone,    is 
//             Best,     is 
//             Hill,      is 

.     $460  —  336  =  124. 

.       270. 

.       184. 

.       430  —  336=    94. 

218. 

Number  of  partners, 
Each  partner's  loss, 

4)1344 

336  —  270  =    (iQ 
336  —  184  =  152. 

218. 

Now,  it  appears  that  the  whole  loss  was  $1344,  which,  when  borne  equally  by  the  four 
partners,  will  leave  a  balance  due  to  each  of  $336,  and  those  who  have  drawn  out  so  far  as 
to  reduce  their  balances  beloio  this,  must  refund  the  difference  to  those  whose  balances  exceed 
this  amount.     It  will  be  better  understood  in  a  Journal  entry. 

Sundries  To  Sundries,  $218. 

George  Draper, $124. 

Charles  Hill, 94. 

To  Wm.  Stone, 66. 

//    J.  Best;     .......  152. 

When  the  above  sums  are  paid  over  by  Stone  &  Best,  and  received  by  Draper  &  Hill, 
the  above  Journal  Entry  will  be  made,  and  when  the  amounts  are  posted,  they  will  leave  the 
balances  due  to  each  partner  equal,  viz. :  $336,  the  amount  of  each  partner's  loss. 

Before  concluding  the  subject  of  partnership  settlements  it  will  be  proper  to  direct  the 
reader's  attention  to  settlements  upon  investments  of  part  of  the  joint  capital  of  the  firm, 
in  which  it  is  arranged  that  the  profits  or  losses  are  to  be  divided  in  different  proportions 
from  those  of  their  general  business  :  for  instance,  suppose  Hay,  Wood  &  Banks,  equal  part- 
ners in  business,  purchase  the  Union  Cotton  Factory  for  $16000,  paying  one-fourth  in  cash, 
and  giving  the  notes  of  the  firm  for  the  balance,  $12000.  Wood  &  Banks  decline  owning 
more  than  one-fourth  each  of  the  mill,  whereupon  Hay  takes  the  other  half.  It  is  agreed 
that  the  gain  or  loss  by  the  factory  shall  be  divided  in  these  proportions.  Required  the 
Journal  entry  for  opening  the  account. 

Sundries  To  Sundries. 

Hay, '.         .  $8000 

Wood, 4000. 

Banks, 4000. 

To  Bills  Payable, 12000. 

tf   Cash, 4000. 

The  receipts  and  expenditures  of  the  mill  will  be  kept  under  the  head  of,  Union  Mill  and 
owners,  and  dividends  made  of  the  gain  or  loss,  as  with  Ship  Roscoe  and  owners,  page  97. 
But  the  cost  of  purchase  can  be  placed  to  no  other  accounts  than  those  of  the  owners  while 
they  own  it  in  proportions  different  from  their  business. 

181 


DUFF'S  BOOK-KEEPING. 


CONCLUDING  REMARKS  UPON  SET  II. 

We  have  already  demonstrated  the  advantages  of  this  mode  of  arranging  and  conducting 
books.  We  have  practically  exemplified  its  efficacy  in  preventing  error,  and  the  facilities  ii 
affords  for  detecting  it  when  it  occurs.  We  have  shown  that  no  entry  once  made  upon  the 
Day  Book,  or  any  of  the  primary  books,  can  afterwards  be  omitted,  in  its  passage  through 
the  books,  without  detection.  While  the  common  Double  Entry  Trial  Sheet  proves  nothing, 
but  that  Ledger  agrees  with  itself;  if  what  is  posted  into  it  is  posted  correctly  the  trial  will 
say,  all  is  right,  no  matter  how  much  you  may  leave  behind  in  the  primary  books.  Our  trial 
requires  the  Ledger  to  agree  with  all  the  other  books,  thereby  affording  a  security  against 
error,  which  we  believe  has  never  yet  been  introduced  into  practice. 

It  will  be  proper  to  point  out  the  advantage  that  will  be  derived  from  even  a  partial  adop- 
tion of  this  method.  Persons  who  do  not  choose  to  adopt  and  apply  it  to  its  full  extent,  may 
introduce  a  single  book  at  a  time,  and  keep  it  upon  this  principle  in  connection  with  the 
common  Double  Entry  books,  and  derive  all  the  advantages  we  have  pointed  out,  as  far  as 
that  book  is  concerned,  without  disturbing  either  their  other  books  or  their  business.  Take 
our  Cash  Book,  for  instance,  p.  144,  and  you  will  find  nothing  in  it  to  prevent  its  being  kept 
in  connection  with  any  kind  of  books  whatever.  It  admits  of  being  balanced  like  any  other 
•  Cash  Book,  at  any  time  that  it  suits  your  convenience,  the  outer  columns  being  always  for- 
warded, unbroken  by  the  balances,  to  correspond  with  their  representatives  in  the  Ledger, 
and  as  soon  as  an  error  gets  into  one  book  or  the  other,  a  disagreement  between  the  amouat 
of  these  columns  is  the  immediate  consequence.  You  see  at  once  which  side  it  is  upon,  and 
then  have  only  to  ascertain  where  this  disagreement  commences,  and  you  find  the  error 
immediately. 

But  with  the  old  form  of  Cash  Book,  although  you  perceive,  by  its  disagreeing  in  halance, 
with  that  of  the  account  in  the  Ledger,  it  affords  not  the  slightest  clue  to  where,  or  upon 
which  side,  the  error  exists.  You  have  no  means  of  finding  it,  but  by  beginning  at  the  time 
the  account  was  last  balanced  on  the  Ledger,  and  comparing  every  entry  on  both  sides. 

The  same  remarks  apply  to  our  Bill  Books.  The  clearness  and  simplicity  of  these  accounts, 
when  conducted  upon  this  method,  must  be  apparent  to  all.  We  have  spent  days  in  correct- 
ing a  Bill  account,  where  the  number  of  entries  was  not  over  one  hundred,  but  where  the 
notes  on  one  side  were  frequently  posted  in  collected  amounts,  and  on  the  other,  broken  up 
and  posted  in  partial  payments,  endorsed  upon  the  notes.  We  have  no  fear  of  any  book- 
keeper, who  has  had  a  task  of  this  kind  to  perform,  readily  appreciating  the  value  of  our 
plan  of  keeping  these  books  and  accounts. 

Those  who  keep  a  Sales  Book  can  derive  the  same  advantages  from  it  in  connection  with 
common  books  as  we  do.  It  will  check  the  credit  side  of  the  merchandise  account,  and  if 
they  choose,  they  can  post  the  merchandise  from  it,  in  accumulated  amounts,  as  we  have 
recommended,  p.  142.  The  same  remarks  apply  to  the  Invoice  Book  if  properly  kept.  And 
there  is  nothing  to  prevent  any  one  from  footing  and  forwarding  the  amount  of  their  Day 
Book  to  check  the  Journal.  Our  form  of  Check  Book  may  be  introduced  in  any  business, 
with  all  the  advantages  we  have  pointed  out  in  correcting  the  Bank  account.  In  a  word, 
the  introduction  of  our  method  requires  no  upsetting  of  the  established  principles  of  con- 
ducting accounts,  in  any  establishment.  It  can  be  introduced  by  piecemeal — one  book  at  a 
time  until  its  practical  working  is  fairly  tested. 

182 


KEY, 


CONTAINING  THE   ANSWERS  OF   SUCH  EXERCISES  AS  ARE  NOT 
GIVEN  IN   THE   PRECEDING  WORK. 


Answers  to  the  Questions  for  Examination  on  Balancing  the  Introductory  Set. 


Page  36. 

Ans.  1. — The  Stock  and  Balance  accounts  show  the  net  capital  $2980. 
At  the  second  balance  it  is       .         .         .         .  28500. 
2. — The  Profit  &  Loss  account  shows  a  loss  of        .         .        20. 
In  the  second  balance,  a  gain  of       .         .         .      520. 
3. — My  whole  gain  was  $260.;  my  whole  loss  was  $280. 

In  the  second  balance,  the  whole  gain  was  $673.75;  the  whole  loss,  $153.75. 
4. — I  gained  $170.  on  the  first,  and  $600.  on  the  second  balance. 
5. — $1700.  on  the  first,  and  (the  balance  brought  down  included)  $4600.  in  the  second 

balance. 
6. — $1870.  in  the  first,  and  $2200.  in  the  second  balance. 
7. — None  in  the  first  balance;  in  the  second,  $3000. 
8.-83080.  in  the  first,  and  $7300.  in  the  second  balance. 
9. — $500.  in  the  first,  and  $3000.  in  the  second  balance. 
10. — $300.  in  the  first,  and  the  same  in  the  second  balance. 
11. — The  Cr.  side  of  Balance  account  shows  it  to  be  $900.  in  the  first,  and  $2800.  in 

the  second  balance. 
12. — The  Dr.  side  of  Balance  account  shows  the  first  $3880.;  the  second,  31,300. 
13.— The  Cr.  side  of  Stock  shows  it  to  be  $3000.  in  the  first,  and  $2980.  in  the  second 

balance. 
14. — Solution  given  for  first  Balance,  is  $71||. 
15. —  do.  do.  is  10  per  cent. 


PROOF  SHEET  FOR  LEDGER  B,  June  30,  1867. 


Des. 


Ces. 


Stock   . 

Merchandise     . 
Bills  Receivable    . 
William  Hay    . 
Bills  Payable 
House  in  Broadway  . 
Kobert  Morris 
Ship  Hudson    . 
Profit  &  Loss 
Shipment  to  Liverpool 
J.  Taylor  &  Co.     . 
Commission 
Estate  A.  Lenox    . 
House  in  Cedar  Street 
City  Bank  Stock  . 
C.  Lenox  . 

B.  Lenox 
Cash 

C.  Hartwcll  . 


12 


183 


DUFF'S   BOOK-KEEPING. 


ANSWERS   TO  THE   EXAMINATION   ON  PAGE   36, 

Applied  to  closing  the  principal  Ledger,  referred  to  at  the  Balance 

Account,  p.  113. 

Ans.  1. — Stock  and  Balance  show  it  to  be  $61,544.50. 

2. — Profit  &  Loss  account  shows  it  to  be  $28,044.50. 

3.— Total  gains,  $31,599.30.     Total  expenses  and  losses,  $3554.80. 

4.— I  gained  $13,743.12. 

5.— Total  purchases  were  $50,830.10. 

6.— Total  sales,  $46,445. 

7. — Amount  on  hand,  per  Inventory,  is  $18,128.22. 

8. — Cash  account  shows  it  to  be  $8891. 

9. — Bills  Receivable  account  shows  it  to  be  $8680. 
10.— Bills  Payable  account  shows  it  to  be  $6927.22. 
11. — The  Balance  account  shows  it  $46,750.34. 
12.— The  Balance  shows  it  $108,294.84. 
13.— The  Stock  shows  it  $31,300. 
14. — Allowing  156  business  days  between  the  1st  January  and  30th  June, — 

the  average  daily  sales  would  be     ......         .  $297.72 

15. — The  total  purchases  were 50,830.10 

The  amount  on  hand  is       .....         .     18,128.22 


Leaving  the  cost  of  the  part  sold 


.  $32,701.88 


Then,  32,701.88  :  13,743.12  : :  100  :  42  per  cent,  average  gain,  nearly. 

The  teacher  should  now  require  the  learner  to  give,  upon  a  slate  or  sheet  of  paper,  the 
opening  Journal  entry  of  the  contents  of  this  Ledger,  supposing  it  was  required  to  transfer 
the  same  to  a  new  set  of  books.     It  would  be : 


Sundries  To  Stock    . 
Merchandise  . 
Bills  Receivable      . 

fol.    1 
II      3 

$18,128.22 
8,680. 

$108,294.84 

House  in  Broadway 
R.  Morris 
Ship  Hudson . 
Shipment  to  Liverpool 
John  Taylor  &  Co. 
House  49  Cedar  Street 

II      4 
II      5 
//      6 

//      7 
//      8 
II    10 

15,000. 

5,676.59 
16,000. 

8,000. 

1,745.28 
12,000. 

City  Bank  Stock     . 

//     // 

10,000. 

Charlotte  Lenox 

//     /' 

500. 

Robert  Lenox 

//     // 

800. 

Cash       . 

C.  Hartwell    . 

//    12 
//     // 

8,891. 
2,863.75 

Stock  To  Sundries    . 
To  William  Hay     . 
//   Bills  Payable     . 
//   Estate  of  A.  Lenox 

'  fol.  '  3 

.    II      4 

II    10 

$46,750.34 

$10,813.12 
6,927.22 
29,010. 

He  should  also  be  directed  to  make  the  same  entry  upon  the  principle  explained  in  Note 
1,  p.  70,  viz. — 

Sundries  To  Sundries,  $108,294.84. 

Inserting  the  debits  of  the  Balance  account  for  one  side  of  the  entry,  and  the  credits  for 
the  other  side.  This  form  of  the  opening  entry  of  books  makes  only  one  entry  for  the 
Stock  account — the  net  capital,  and  is  to  be  preferred  to  the  common  method  of  making 
two  entries. 

184 


KEY. 


ANSWERS  TO  THE  EXERCISES   ON  PAGE  176. 

1.  Duff,  Gordon  &  Co.,  the  late  firm,  Dr.  to  stock  for  the  balance  due  tlicm  on  the 

firm's  books. 

2.  The  same  as  the  other  partners. 

3.  Sundries,  Dr.  to  Duff,  Gordon  &  Co. 
Cash,  for  the  money  in  hand. 

City  Bank,  for  balance  transferred. 

Bills  Receivable,  for  amount  of  Notes  in  hand. 

4.  Duff,  Dr.  to  Sundries. 

To  City  Bank,  to  close  account. 
//  Cash,  do.         do. 

//  Bills  Receivable,  do. 

5.  No  entry  until  converted  into  available  funds. 

6.  Duff,  Gordon  &  Co.,  Dr.  to  Cash     SIOOO. 

7.  Gordon,  Dr.  to  Duff    .         .         .     1000. 

8.  Cash,  Dr.  to  the  late  firm     .         .     1000. 

9.  Cash,  Dr.  to  Duff,  Gordon  &  Co.        2000. 

10.  Duff,  Dr.  to  Merchandise     .         .     2000. 

11.  Carter,  Dr.  to  Merchandise  .     3000. 

12.  No  entry,  he  having  given  the  firm  no  credit  for  the  Merchandise. 

13.  Merchandise,  Dr.  to  Duff,  Gordon  &  Co.       §3000. 
U.  Cash,  Dr.  to  Duff,  Gordon  &  Co.  .         .     62. 

15.  Duff,  Dr.  to  S.  Gaynor,  to  close  account        .     62. 

16.  The  firm,  Dr.  to  Cash,  paid  R.  Banks  in  full     80.50 

17.  Banks,  Dr.  to  Duff,  to  close  account     .         .     80.50 

18.  The  same  as  if  the  firm  still  existed.  To  or  By  Profit  &  Loss. 

19.  Profit  &  Loss,  Dr.  to  the  individual,  for  the  amount  lost. 

20.  Re-open  the  account  as  directed,  Suspended  List,  p.  174;  then.  Duff,  Dr.  to  Butler, 

for  the  amount  received. 

21.  In  the  usual  way,  To  or  By  the  partners'  accounts. 

22.  When  Duff  pays  over  each  partner  the  balance  due  him,  it  will  close  both  their 

accounts  and  his. 

23.  They  will  close  their  accounts  To  or  By  Profit  &  Loss. 

24.  Sundries,  Dr.  to  Profit  &  Loss 140.05. 

J.  Carter,  for  5  f  cent,  discount  on  $1400.53     $70.02 

W.  Gordon,         do.  do.  ...     70.03 

25.  Duff,  Dr.  to  Stock,  for  balance  due  on  account,  less  discount  allowed. 

Remark. — By  a  careful  comparison  of  the  above  answers  with  the  questions,  p.  176,  and 
the  amounts  in  the  balance  sheet,  it  will  be  seen,  that  although  the  firm  no  longer  exists, 
each  partner  must  keep  his  account  with  it,  and  it  keeps  account  with  them  until  finally 
settled  up.  The  books  of  an  old  firm  must  record  the  whole  settlement  of  its  afiiiirs,  as 
completely  as  if  it  still  existed. 

The  retiring  partners  can  never  debit  the  remaining  ones  for  their  claim  against  the  firm. 
The  remaining  partners  are  not  accountable  any  faster  than  the  effects  are  converted  into 
available  funds.  To  carry  such  entries  into  private  account  would  inevitably  lead  to  the 
greatest  confusion. 

It  is  at  all  times  advisable,  where  the  amount  can  be  agreed  upon,  for  the  parties  to  agree 
to  an  allowance  for  bad  debts,  &c.,  and  one  party  to  sell  out,  and  the  other  to  buy,  as  exem- 
plified in  questions  24  and  25.     The  business  then  goes  on  without  interruption. 

When  this  arrangement  cannot  be  effected,  the  new  firm  has  no  other  course  to  follow, 
than  that  laid  down  upon  page  176.  And  if  it  has  dealings  on  its  own  account  with  the 
retired  partners,  the  greatest  care  must  be  taken  to  distinguish  between  payments  made  on 
private  account,  and  on  account  of  the  late  firm,  otherwise  the  accounts  of  the  new  and  old 
firm  may  become  involved  in  inextricable  confusion. 

185 


DUFF'S  BOOK-KEEPING. 


MANUFACTURERS'  FORMS, 


TIME  AND  WAGES  REGISTER  OF  THE  PITTSBURGH  NOVELTY  WORKS. 


1867. 

January  1. 

Jancaby  8. 

Name. 

Quantity. 

Rate. 

Amount. 

Quantity. 

Bate. 

Amoant. 

Patrick  Birch 

6  doz. 

Locks. 

$4. 

24 

John  Brown 

5h  // 

If 

5. 

27 

50 

Eobert  Hammer 

4    // 

II 

6. 

24 

Levi  Wall 

3J  // 

If 

7. 

24 

50 

Joel  Black 

2^  // 

II 

8. 

20 

, 

Wm.  End 

15    // 

Latches. 

1.50 

22 

50 

Charles  Dunn 

12    // 

II 

1.75 

21 

Joseph  Castle 

10    1/ 

II 

2. 

1     20 

John  Cross 

25    // 

Hooks. 

.50 

12 

50 

George  McCoy 

30    // 

// 

.40 

12 

Forward 

208 

The  above  form  is  designed  for  paying  the  men  by  the  piece,  in  weekly  payments.  "We 
have  extended  the  first  week's  wages  upon  the  first  page.  In  business,  the  above  $208  is 
brought  forward  into  the  head  of  the  "  amount"  column  upon  the  next  page,  and  so  con- 
tinued from  page  to  page  until  the  whole  list  of  workmen  (often  several  hundred)  is  com- 
plete. On  pay-day  the  whole  list  is  extended  as  above.  The  men  assembled,  the  pay-clerk 
calls  the  names  in  their  order  upon  the  Register,  hands  each  the  amount  due  him,  and 
checks  it  upon  the  left  money  column,  thus  -j/. 

From  the  foot  of  the  last  page  of  the  Register,  the  weekly  amount  total  is  transferred 
and  marked  "  entered  Cash  Book." 

This  book  should  be  made  of  paper  large  enough  to  contain  four  weeks'  business.  It 
will  save  writing  to  continue  the  ruling  over  two  pages.  The  names  will  not  then  have  to 
be  re-written  until  the  weekly  spaces  are  all  filled.  If  a  workman  is  discharged,  it  is  noted 
opposite  his  name,  and  his  remaining  weekly  spaces  remain  blank. 


186 


DUFF'S  BOOK-KEEPING.— MANUFACTURERS'  FORMS. 


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187 


FORM  OF  A  RECEIVING  AND 

RECEIVED. 


Date. 

Marks  and  Articles. 

Received  from. 

Consigned  to. 

Weights. 

Charges 
paid. 

1867. 

Jan. 

2 

0.  D.  14  Bales 

Penna.  R.  R. 

C.  Day,  Cincinnati 

700, 
460, 
466, 
221, 
447, 
801, 
740, 

70 

970 

671 

970 

100 
1200 
1427 

9243"~ 

369 

72 

10 

W.Wade,  170  B.  Flour 

P.  F.  W.  &  C.  R.  R. 

W.  Wade,  N.  Y. 

85 

Feb. 

1 

R.  0.,  2  Hhds. 

S.  B.  Velocity 

R.  Owens,  Philada. 

l\Tar. 

10 

W.&Co.lOHhds.Hams 

S.  B.  Bart 

Webb  &  Co.,  N.  Y. 

20 

B.  &  Co.,  200  B.  Flour 

S.  B.  Peru 

Beck  &  Co.,  N.  Y. 

50 

Apr. 

1 

J.  P.  9  Bales 

Penna.  R.  R. 

J.  Pope,  St.  Louis,  Mo. 

400, 

740 

102 

60 

300, 

860 

660, 

610 

' 

430, 

920 

210, 

5130. 

10 

AV.  H.  300  B.  Oil 

S.  B.  Diadem 

Pike  &  Co.,  Baltimore 

75 

The  above  form  will  be  found  suitable  to  almost  all  kinds  of  Receiving  and  Forwarding 
business.  It  will  be  seen  that  the  column  for  "  weights"  is  left  blank  when  the  freight  is 
charged  by  the  package ;  and  the  money  column,  ^^  charges  paid,"  is  only  used  when  we  have 
to  pay  charges  to  the  carrier  from  whom  we  receive  the  articles. 

The  amounts  of  commission  and  charges  are  entered  in  the  Cash  Book  and  Journal,  out 
of  the  column  "  commission  and  charges,"  when  the  amount  is  marked  off  thus,  -j/.  Some- 
times we  collect  both  commission  and  charges  of  the  conveyance  by  which  we  forward,  insert- 
ing the  amount  in  their  bill  of  lading,  to  collect  of  the  consignee  when  they  deliver  the 
freight.  If  we  have  an  account  with  the  consignee,  we  can  debit  his  account  for  the  amount. 
Suppose  this  to  be  the  case  with  the  first  entry  above,  our  Journal  entry  will  be 


C.  Day,  Dr.  to  Sundries  .... 

To  Cash,  paid  charges  to  Penna.  R.  R.  on  14  bales 
//   Commission,  forwarding  same  p.  S.  B.  Herald 


$415.94 


369.72 
46.22. 


188 


or  rftE    ^    ^ 


SAi 


or 


FORWARDING  REGISTER. 

FORWARDED. 


Date. 


1867. 

Jan. 


Feb.  (15 
16 

Mar.  20 
21 

Apr.       4 


11 


Con>eyance. 


Steamer  Hprald 


Pennu.  K.  R. 
ff 
II 
II 

S.  B.  Dart 


Penna.  R.  R. 


Articles  and  Weights. 


14  Bales  9243  cwt. 


170  Bbls.  Flour 
2  Hhds.  Tobacco 
10  Hhds.  Hams 

200  B.  Flour 
9  Bales 


300  Bbls.  Crude  Oil 


Consigned  to. 


C.  Day,  Cincinnati 


W.  Wade,  New  York 
R.  Owens,  Pbilada. 
Webb  &  Co.,  N.  York 
Beck  &  Co.,  N.  York 
J.  Pope,  St.  Louis 


Pike  &  Co.,  Baltimore 


Coram. 


46 


80 


22 


50 


65 


Coram.  * 
Charges. 


415 


93 

2 

10 

60 

128 


105 


94 


50 


25 


Or,  if  our  arrangements  require  us  to  charge  tlie  boat  or  company  by  which  we  forward, 
take  the  second  entry : 


Penna.  R.  R.  Co  ,  Dr.  to  Sundries  ....         ^93.50 

To  Cash  paid  P.  F.  W.  &  C.  R.  R.  on  170  Bbls.  Flour  85. 


//  Commission,  forwarding  same 


8.50. 


If  we  collect  of  the  conveyance,  we  debit  cash  for  the  amounts  so  collected.  Credits 
as  above. 

In  extensive  business,  this  book  must  be  paged  and  the  consignees'  names  indexed.  The 
index  will  be  of  the  common  form,  and  lettered  in  the  beginning  of  the  book. 


189 


DUFFS  BOOK-KEEPING. 
RATES  OF  STORAGE 

ALLOWED   BY   THE   CHAMBER  OF  COMMERCE  OF  PHILADELPHIA  WHEN  NO   SPECIAL 
AGREEMENT   IS  MADE,  OR  NOTIFICATION  GIVEN.— CHARGEABLE  PER  MONTH. 


Ground    Cellar* 

Ground 

Cellar. 

Floor      or  lofts. 

Floor. 

or  loftg. 

Cents.    Cknts. 

Cents. 

Cents. 

Almonds,  per  bale       .         : 

10       8 

Iron,  bloom,  or  pigs,  per  1000  lbs 

8 

6 

Ashes,  per  bbl. 

7      6 

//     bars          .... 

10 

8 

])ale  Hope,  per  100  lbs 

2       U 

//     hollow  ware 

.  20 

15 

li-irilla,  per  ton 

30     25 

Lard,  per  keg   .... 

U 

1 

Bark,  Quercitron,  per  hhd. . 

30     25 

Lead,  in  pigs,  per  1000  lbs 

.     7 

5 

Bottles,  per  gross     . 

8      6 

II     in  sheets. 

10 

8 

Burr  Stones        .... 

I      1 

//     in  oil  or  dry 

.15 

11 

Butter,  per  keg 

U    1 

Leather,  per  side 

^ 

1 

Candles,  per  box  25  lbs 

f      i 

Lemons,  per  box  . 

.     2 

U 

//         Sperm,  per  box 

1        f 

Lumber,  in  yard,  per  1000  feet  12^  c. 

Cassia,  per  box 

5      4 

Madder,  per  hhd. 

25 

20 

//      per  100  !b  mats 

12^  10 

Molasses,  per  hhd. 

.  25 

20 

Champagne,  in  baskets,  per  doz. 

U     U 

II       per  tierce    . 

18 

14 

Cheese,  per  100  lbs       .         .         . 

2       U 

//       per  barrel 

.     6 

5 

Coal,  in  shed  or  yard,  i  per  bushel 

Nails,  per  1000  lbs    . 

15 

10 

Cocoa,  per  100  lbs     . 

2       \l 

Naval  stores,  per  barrel 

.     6 

4 

Codfish,  per  drum 

121  10 

Oil  in  casks,  per  100  gallons 

20 

15 

//        loose,  per  100  lbs 

U     1 

Oil  in  baskets,  per  dozen 

3. 

4 

1 

Coffee,  per  hhd 

20     15 

Pepper  and  Pimento,  per  100  lbs 

1? 

1 

II      in  100  lb  bags 

U     1 

Plaster,  not  under  cover,  10  c.pr  ton. 

Copper  sheathing,  per  case    . 

12^  10 

Provisions,  per  bbl. 

.     6 

4 

//                  rods,perl001bs 

12i  10 

Quicksilver,  per  flask 

n 

1 

Cordage,  per  100  lbs 

2      U 

Raisins,  per  keg   ; 

.  1* 

1 

Corks,  per  bale     .         .         . 

12     10 

//  ^    per  box 

i 

1 

Cotton,  per  square  bale      , 

12^  10 

Rice,  per  tierce     . 

.  12 

10 

//       per  round  bale 

15     12 

Salt,  per  bushel 

f 

i- 

Duck,  per  pack,  2  bolts 

U     1 

Saltpetre,  per  bag 

.  u 

li 

Dyewoods,  Braziletto  and  Nica- 

Segars, per  1000        . 

1 

1 

ragua,  per  ton  . 

50     37^ 

Steel,  per  1000  lbs 

.  10 

8 

II          other  kinds,  per  ton 

25     20 

Staves,  in  yard  or  wharf. 

Earthen  and  glass  ware,  per  hhd. 

20     15 

for  pipes,  per  1000,  25  c. 

Figs,  per  drum 

i       f 

Sugar,  per  hhd.    . 

.  25 

20 

Fish,  per  barrel    .         .         .         . 

5      4 

Sugar,  per  bbl. 

5 

4 

Flax,  per  100  lbs      . 

2^     2 

//      per  box,  under  500  lbs 

6 

4^ 

Flax  seed,  per  tierce     . 

9      7 

//      other  packages  100  lbs    . 

U 

n 

Flour,  and  other  clean  barrels     . 

3       2 

Tea,  per  chest 

.     4 

3 

Ginger,  per  100  lbs 

21     2 

Tin,  block,  per  1000  lbs    . 

10 

8 

Grain  and  seed,  in  bulk,  per  bushel 

f       i 

//     sheet,  per  box 

.       i 

1 

Hams,  per  hhd.    . 

15     11 

Tobacco,  Ohio  &  Maryland,  p.  hhd. 

25 

20 

Hay,  per  bale    .... 

12i  10 

//         other  kinds 

30 

22 

Hemp,  loose,  per  ton     . 

75     62^ 

//         manufactured,  per  keg 

3 

2 

//      in  bales,  per  100  lbs 

2      U 

II         per  seroon 

.     4 

3 

Hides,  each 

1        f 

Wines  and  Liquors,  per  cask  of 

Hoops,  in  yard  or  wharf,  15  c.per 

1000. 

II         130  to  150  gallons 

30 

25 

Hops,  per  bale 

10       8 

II     less  than  130  gallons  . 

.  25 

20 

Horns,  per  1000  .         .         .         . 

50    37^ 

//     not  over  63           // 

12i 

10 

Indigo,  per  seroon     . 

6       5 

II     not  over  35           n 

.     6 

5 

II       per  case,  . 

12     10 

II     not  over  20           n 

5 

4 

II     per  dozen  bottles 

.     1 

f 

All  merchandise  taken  on  storage  pays  for  one  month,  and  it  is  chargeable  with  another  month  if  it  remains  one  day  nfter 
this  time.    The  owners  of  the  goods  pay  all  charges  for  storing,  tiering  reasonably  high,  and  for  delivering. 

190 


DUFF'S  BOOK-KEEPING. 


RATES  OF  COMMISSION 

ESTABLISHED  BY  THE  CHAMBER  OF  COMMERCE  OF  THE  CITY  OF  PHILADELPHIA, 
WHEN  NO  SPECIAL  AGREEMENT  EXISTS, 

ON   INLAND   AND   FOREIGN   BUSINESS. 


PER  CT. 

Merchandise,  for  selling,  on  the  total 
amount  (Foreign)       .         .         .         .5 

ft         (Domestic)    .         .         .         .  2| 
for  purchasing  and  shipping,  or  accept- 
ing bills  for  purchases,  on  cost  and 
charges  .         .         .  .  .  2J 

for  receiving  and  forwarding:,©??  the  value     J 


on  responsibilities  incurred  for  same    . 

Vessels,  for  purchasing  or  selling,  on 

the  gross  amount     .... 

for  chartering  to  proceed  to  another  port 
or  for  procuring  freight 

for  collecting  freight  or  general  ave- 
rage, on  the  amount  collected   . 

paying  for  repairs,  outfits,  or  disburse- 
ments, on  the  total  amount 
Marine  Insurance,  for  effecting,  when 
the  premium  does  not  exceed  10  "^ 
ct.,  on  the  amount  covered 

if  the  premium  exceed  10  '^  ct.,  on  the 
amount  of  premium 

settling  and  collecting  losses  without 
litigation,  on  the  amount  collected     . 
Fire  Insurance,  for  effecting,  on  the 
amount  of  premium 

for  adjusting  and  collecting  losses,  on 
the  amount  collected 


Inland  and  Foreign  Bills  of  Ex- 
change, endorsing  or  drawing  and 
negotiating,  in  every  case,  on  the  pro- 
ceeds     .         .         .         .         .         .  2J 

for  purchasing  without  endorsing,  on 
cost  and  charges      .  .  .  .     ^ 

for  selling,  on  the  net  proceeds     .         .     ^ 

for  collecting,  on  the  amount  collected     ^ 

for  paying  over,  on  the  amount  paid    .     J 

for  remitting,  on  the  amount  remitted       ^ 

Specie  and  Bank  Notes,  Drafts  and 

Public  Stocks,  for  selling,  on  the 

proceeds  .  .  .  .  .     h 

for  purchasing,  on  cost  and  charges     .     ^ 
Public  Stock,  for  collecting  dividends, 
on  the  amount  collected  .         .     i 

Advancing   money,   or   for   accepting 
bills,  in  all  cases  on  the  amount  ad- 
vanced or  accepted  .         .         .  2J 
Collecting  claims  on  insolvent  estates 
or  litigated  or  disputed  accounts,  on 
the  amount  recovered       .         .  .5 
Receiving  and  Paying  all  moneys  from 
which  no  other  commission  is  rec'd    1 
Receiving         //          .         .         .         .     ^ 

Paying  tf  .  .  .  .     ^ 

Guarantee,  in  every  case     .         .         .2^ 


All  consignments  of  merchandise  withdrawn  or  re-shipped  are  subject  to  full  commission 
to  the  extent  of  all  advances  and  responsibilities  incurred,  and  to  half  commission  on  the 
current  value  of  remainder. 

For  selling  merchandise  previously  consigned  to  another  house,  but  withdrawn  from  them, 
when  no  responsibilities  are  incurred,  only  half  commission  is  to  be  charged  upon  the  cur- 
rent value,  such  value  to  be  determined  in  all  cases  by  the  certificates  of  two  competent 
merchants  or  brokers. 

Bills  remitted  for  collection  under  protest  for  non-acceptance  or  non-payment  are  subject 
to  half  commission  only. 

The  above  commissions  are  exclusive  of  storage,  brokerage,  guarantee,  and  all  other  ex- 
penses incurred. 

Unless  he  order  Insurance,  the  risk  of  loss  by  fire,  robbery,  and  all  other  unavoidable 
risk,  is  with  the  owner  of  the  consignment,  ordinary  care  being  taken  by  the  consignee  to 
secure  it. 


191 


DUFF^S  BOOK-KEEPING. 


RATES  OF  COMMISSION 

ESTABLISHED  BY  THE  CHAMBER  OF  COMMERCE  OF  THE  CITY  OF  NEW  YORK, 
WHEN  NO  SPECIAL  AGREEMENT  EXISTS  TO  THE  CONTRARY. 

[^Extracted  from  the  Minutes,  Vol.  II.,  pp.  20  and  30. 1 

FOR    INLAND    BUSINESS. 


Merchandise,  for  buying,  selling,  ship- 
ping, or  accepting  for  purchases 
without  funds  in  hand  to  cover  the 

same 

Stocks,  for  buying  or  selling 
Specie,            //               //              .        . 
Bills  of  Exchange,  selling  without  en- 
dorsement       

Bank  Notes,  or  Drafts,  uncurrent,  for 
selling  ..... 

Bills  of  ExcHANGE,endorsing  and  selling 
Vessels,  purchasing  or  selling 

chartering,  to  take  in  cargo  at  other 

ports 

procuring  freight        .... 
collecting  freight         .... 
outfits,  repairs,  and  disbursements 
collecting  general  average 


Remittances  in  Bills,  in  every  case 
Receiving  and  forwarding  goods,  on 

the  value  of  the  same 
when  the  same  is  entered  for  duty  or 

debenture       ..... 
Collecting  dividends  on  stocks     . 
Collecting  Bills,  and  paying  over  the 

amount  ..... 

Receiving  and   Paying  money  upon 

which  no  other  commission  has  been 

received 

Collecting   and   Settling   Insurance 


Marine  Insurance,  for  effecting,  in  every 

case  where  the  premium   does  not 

exceed  10  "^  ct.,  on  the  amt.  covered 

when  the  premium  exceeds  10  "^  cent., 

on  the  amount  of  'premium 


21 


for  foreign  business. 


Merchandise,  for  selling 

for  buying  and  shipping  with  funds  in 

hand,  on  the  total  amount  of  cost  and 

charges  .  .  .  .  . 

Stocks,  for  purchasing  or  selling  . 

Specie,  //  n        .        . 

Bills,  Drawing  or  Endorsing,  in  every 

case 

Vessels,  purchasing  or  selling 

for  procuring  freight 

collecting  freight  on  general  average 

repairs,  outfits,  or  disbursements,  with 

funds  in  hand         .         .         .         . 

Marine  lNSURANCE,for  effecting,  in  every 

case  where  the  premium   does  not 

exceed  10  "^  cent.,  on  the  amount 

covered  .         .         .         .         , 


PEE    CT. 

.  5 


21 
1 

2^ 
2^- 
6 
2J 


PER    CT. 

Marine  lNSURANCE,for  effecting,  in  every 
case  where  the  premium  exceeds  10 
^  cent.,  on  the  amount  of  premium   5 

Dividends  on  Stock,  for  collecting      .     * 

Litigated  or  delayed  accounts,  col- 
lecting   5 

Insurance  Losses,  adjusting  and  col- 
lecting .         .         .         .         .         .2^ 

Receiving  and  paying  money  upon 
which  no  other  comm.  is  charged     .  1 

Remittances  in  Bills,  in  every  case  .     ^ 

Landing  and  re-shipping  Merchandise 
from  vessels  in  distress,  on  the  value  2^ 

Receiving  and  forwarding  Merchan- 
dise entered  at  the  Custom-House,  on 
the  value         .  .         '.  .  .1 

on  all  responsibilities  incurred  for  the 
same      .....  2^ 


The  above  commissions  are  without  guarantee  of  debts  for  sales  on  time,  brokerage, 
storage,  and  all  other  charges  incurred.  In  the  absence  of  instructions  for  insurance,  the 
risk  of  loss  by  fire  is  always  borne  by  the  proprietor,  as  also  the  risk  of  loss  by  theft,  rob- 
bery, or  any  other  unavoidable  accident,  provided  ordinary  care  be  taken  for  the  security  of 
the  property.  Bills  remitted  for  collection  and  returned  under  protest  for  non-acceptance, 
or  non-payment,  are  subject  to  the  same  commission  as  when  duly  honored.  All  consign- 
ments of  merchandise  withdrawn  or  re-shipped  are  subject  to  full  commission,  to  the  extent 
of  the  advances  or  responsibilities  incurred,  and  to  half  commission  on  the  balance  of  value. 

192 


DUFF^S  BOOK-KEEPING. 


RATES  OF  STORAGE 

CHARGEABLE  MONTHLY,  ESTABLISHED   BX  THE  CHAMBER   OF   COMMERCE   OF   THE 

CITY  OF  NEW  YORK,  WHEN  NO   PRiVaTE   AGREEMENT  EXISTS. 

[^Extracted  from  the  Minutes^  Vol.  II. ^  p.  31  to  34'^ 

CENTS. 


CENTS. 

Almonds  in  packages,  per  cwt.     .         .6 
Alum  in  bags  or  casks,  per  ton     .         .  40 
Ashes,  pot  or  pearl,  per  bbl.         .         .     8 
Beef  do.     .         .         .6 

Bottles,  quart,  in  crates  or  hampers,  per 
gross   ......     8 

Bark,  Quercitron,  in  casks,  per  ton        .  60 
Bagging,  in  bales  or  loose,  per  piece      .     3 
Butter,  in  firkins  of  60  lb,  per  firkin     .     2 
Cocoa,  in  bags  or  casks,  per  cwt.  .     2  J 

Chocolate,  in  50  lb  boxes,  per  box        .     2 
Candles,  in  50  to  60  lb  boxes,  per  box       2 
Coffee,  in  casks,  per  cwt.      .         .         .     2^ 

do.     in  bags,  per  cwt.       .         .         .2 

Copperas,  in  casks,  per  ton  .  40 

Copper,  in  pigs,  do.     .         .  20 

do.      in  sheets  or  bolts,    do.     .         .  30 
do.      braziets'  bottoms,    do.     .         .  75 
Cordage       .   *     .         .         do.     .         .50 
Cassia,  in  boxes  or  bags,  per  cwt.  .  10 

Cotton,  American,  in  square  bales  300  tbs  12^ 


do.  do.  round  bales 

do.    E.  I.,  in  bales,  per  300  lbs 

Cheese,  in  boxes  or  loose,  per  cwt. 

Duck,  heavy,  per  bolt 
do.    Ravens,  or  Bussia  sheeting. 


per 


per 


40 


piece 
Dry  goods,  in  bales  or  boxes, 

cubic  feet    . 
Earthenware,  in  crates  of  25  to  30  ft.   . 
do.  in  hhds.  of  40  to  50  ft.    . 

Fish,  pickled,  per  bbl. 
do.    dry,  in  boxes  or  casks,  per  cwt.    . 
do...  in  bulk,  per  cwt. 
Figs,  in  frails  or  drums,  per  cwt. 

Flax,  per  ton 

Flax  seed  or  other  articles,  in  casks  of 
7  bushels     ..... 
Flour,  or  other  dry  articles,  per  barrel 
Grain,  in  bulk,  per  bushel    . 
Ginger,  in  bags,  per  cwt. 
Glass,  window,  in  50  feet  boxes    . 

Hemp,  per  ton 

Hides,  dried  or  salted,  per  hide    . 
Hardware,  in  casks  or  cases,' per  40  feet 

cubic  .         .         .         .         . 
Indigo,  in  boxes  or  seroons 
Iron,  in  bar  or  bolts,  per  ton 
do.    in  hoops,  sheets,  or  nail  rods,  per  ton 


16 
9 
3 

u 


40 
15 
30 

6 

4 

2J 

2i 
60 

10 
4 

1 
2 

75 

li 

40 

4 

20 

30 


per 


30 
4 

40 
6 
2i 
21 

12 
8 
6 
3 
1 
2 
2 

2J 

1 

37J 

2 

30 

40 

2 

21 
3 
2 
15 

8 
4i 

20 

37  i 
4 
2 

50 
25 
37^ 

On  articles  rating  by  weight,  it  is  understood  to  be  gross  weight;  and  on  liquors,  oils,  &c.,  the  rate  always  refers  to  the 
whole  capacity  of  the  casks,  whether  they  are  full  or  not.  The  expense  of  putting  the  goods  in  store,  stowing  away,  and  turn- 
ing out  of  store,  to  be  borne  by  the  proprietor  of  the  goods.  All  goods  stored  are  subject  to  one  month's  storage-;  if  taken  out 
within  fifteen  days  after  the  expiration  of  the  month,  to  pay  half  a  month's  storage;  if  after  fifteen  days,  a  whole  mon^>'  .j 
cnarg'^d. 

N  103 


Liquors,  in  puncheons  of  120  galls.,  per 

puncheon     .         ... 
Liquors,  in  quarter  casks 
do.      in  pipes  120  gallons 
do.      bottled  in  casks  or  boxes 
dozen 

Leather,  per  side  .... 

Lard,  in  60  lb  firkins  .... 
Lead,  in  sheets  or  pigs,  per  ton     . 
do.    ground  in  oil  or  dry,  per  ton 
Molasses,  in  110  gallon  hhds. 
Other  casks  in  proportion  to  their  size. 
Nails,  in  casks,  per  cwt. 
Oil,  in  110  gallon  casks  or  hhds. 
do.  in  30  flask  chests,  per  chest  . 
do.  in  baskets,  per  dozen  bottles 
Paints,  in  kegs  or  casks,  per  ton  . 
Pork,  per  barrel  .... 

Pepper,  in  bags,  per  cwt. 
Pimento,  in  casks  or  bags,  per  cwt. 
Rice,  in  tierces,  per  tierce    . 

do.    in  half  tierces,  per  half  tierce 
Rags,  in  bales,  per  cwt. 
Raisins,  Malaga,  in  casks     . 
do.  in  boxes     . 

do.      other  packages,  per  cwt. 
Saltpetre,  in  bags,  per  cwt.  . 
do.        in  casks,  per  cwt. 
Salt,  in  kegs  or  bulk,  per  bushel  . 
Shot,  in  casks,  per  ton 
Soap,  in  50  or  60  lb  boxes,  per  box 
Steel,  in  bars  or  bundles,  per  ton     "     . 

do.    in  boxes  or  tubs,  per  ton 
Sugar,  in  boxes  or  bags,  per  cwt. 
do.     in  casks,  per  cwt. 
do.     refined  in  p'kges  or  casks,  per  cwt. 
{Tallow,  in  casks  or  other  packages,  do. 
Tea,  Bohea,  in  whole  chests,  per  chest 
do.         in  half  chests    . 
do.         green  or  black,  in  qr.  chests 
do.         other  size  boxes  in  proportion 
Tin,  block,  per  ton       .... 
do.  in  the  usual  sized  boxes,  per  box  . 
Tobacco,  in  hhds.,  per  hhd. 

do.       in  bales  or  seroons,  per  cwt.    . 

do.       manufactured,  in  100  lb  kegs 

Woods  for  dyeing,  under  cover,  per  ton 

do.  in  yards,  per  ton 

Whiting,  in  hhds.,  per  ton  . 


30 
6i 
30 

li 

1 

2 
20 
40 
30 


DUFF'S  BOOK-KEEPING. 


THE  QUANTITY  OP  GOODS  TAKEN  FOR  A  TON  IN 
FREIGHTING  VESSELS. 

Extract  from  the  By-Laws  of  the  Chamber  of  Commerce  of  the  City  of 

New  York. 

Resolved^  That  when  vessels  are  freighted  by  the  ton,  and  no  special  agreement  is  made 
between  the  owner  of  the  vessel  and  the  freighter  of  the  goods,  respecting  the  proportion 
of  tonnage,  which  each  particular  article  shall  be  computed  at,  the  following  regulations 
shall  be  the  standard  of  computation. 

That  the  articles,  the  bulk  of  which  shall  compose  a  ton,  to  equal  a  ton  of  the  heavy 
materials,  shall  be  in  weight  as  follows : 

1568  lbs  of  Coffee  in  casks. 
1830  lbs  of  Coffee  in  bags. 
1120  lbs  of  Cocoa  in  casks. 
1307  lbs  of  Cocoa  in  bags. 
952  lbs  of  Pimento  in  casks. 
1110  lbs  of  Pimento  in  bags. 
8  barrels  Flour,  196  lbs  each. 

6     do.      Beef,  Pork,  Tallow,  Pickled  Fish,  Pitch,  Tar,  and  Turpentine. 
20  cwt.  Pig  and  Bar  Iron,  Pot  Ashes,  Sugar,  Logwood,  and  all  heavy  Dyewoods,  Eice, 

Honey,  Copper  Ore,  and  all  other  heavy  goods. 
16  cwt.  Coffee,  Cocoa,  and  Dried  Fish  in  bulk. 
12  cwt.  Dried  Codfish,  in  casks  of  all  sizes. 

6  cwt.  Ship  Bread,  in  casks. 

7  cwt.         do.  in  bags! 

8  cwt.         do.  in  bulk. 

200  gallons  Wine  measure  (on  the  full  capacity  of  the  cask)  of  Oil,  Wine,  Brandy,  and 
all  other  Liquors. 
22  bushels  of  Grain,  Peas,  or  Beans,  in  casks. 
36         //  //  //  in  bulk. 

36         //  European  Salt,  in  bulk. 

31         II  Salt  from  the  West  Indies. 

29        II  Sea  Coal.  • 

40  feet  (cubic)  of  Mahogany,  Square  Timber,  Oak  Timber,  Oak  PlanL  Pine,  and  other 
Boards,  Beaver,  Furs,  Peltry,  Beeswax,  Cotton,  Wool,  and  Bale  Groods  of  all  kinds. 
1  hhd.  of  Tobacco. 
10  cwt.  Dried  Hides. 

8  cwt.  China  Raw  Silk. 
10  cwt.  Net  Bohea  Tea. 
8  cwt.  Green  Teas. 

194 


DUFF'S  BOOK-KEEPING. 

PAET  III. 


195 


DUFF'S  BOOK-KEEPING. 

PART  III. 


COMMERCIAL  CALCULATIONS, 


COMPREHENDING  ABBREVIATED  METHODS  OF  PRACTICAL  COMPtTTATION,  SETTLEMENT 
OP  ACCOUNTS,  &o.  NOT  FOUND  IN  COMMON  ARITHMETICS. 


ABDITION. 

Young  accountants,  though  good  arithmeticians,  often  experience  difficulty  in  adding  up 

long  columns  of  figures  with  certainty.     Such  persons  will  find  the  following  method  useful : 

Set  down  upon  waste  paper  the  sum  of  each  column  under  each  other,  adding  downwards 

for  proof,  and  if  found  correct,  point  off  the  right  hand  figures,  carrying  the  left  to  the  next 

column,  thus: 

4796.27  4.1 

9832.39  3J 

325.41  19 

9800.99  2*4 

4723.78  f  35 

70.87  29 

Mark  off  the  two  upper  places  in  the  column  of  amounts,  for  cents.  Read  the  figures 
marked  off  at  the  right  upwards — 29549.71,  the  total  product.  Any  persevering  student 
can  in  a  few  weeks  attain  a  high  degree  of  proficiency  and  accuracy  in  addition  by  writing 
out  long  columns  of  figures  upon  slips  of  paper,  say  sixty  or  seventy  figures  in  length,  and 
practice  adding  them  for  half  an  hour,  daily.  By  this  means  of  regular  daily  exercise,  the 
student  can  ultimately  attain  such  a  facility  of  addition  as  to  enable  him  to  add  several  col- 
umns of  figures  at  once.  Take  the  above  four  columns  of  dollars,  and  carrying  3  from  the 
cents  makes  the  first  amount  read  73;  73  and  4723  are  4796;  4796  and  9800  are  14596, 
and  so  on  to  the  head  of  the  column.  The  student  must  practice  first  upon  short  columns, 
such  as  will  require  but  little  carrying.  As  he  uses  longer  columns,  carrying  becomes  un- 
avoidable, but  the  eye  soon  becomes  accustomed  to  the  reading  process  in  figures  as  well  as 
letters.     It  only  requires  time  and  application  to  acquire  it  in  either. 

197 


DUFF'S  BOOK-KEEPING. 


PEOFIT  AND  LOSS. 

Under  this  head  we  shall  confine  ourselves  to  exercises  upon  the  rule  for  determining  the 
per  centage  gain  or  loss  upon  a  merchandise  account.     See  pp.  33  and  36. 

Example  1.     Purchases  of  merchandise  for  $11400.25.     Sales  effected  in  seventy-three 
days,  $9400.84.      On  hand,  $3400.84.     Kequired  the  total  gain,  the  average  daily  sales, 
the  average  gain  per  cent,  and  the  average  daily  profits. 

\nswer.     Total  gain         ......     $1401.43. 

Average  daily  sales       •<         .         .         .  128.78,  nearly. 

Average  gain  per  cent.      .         .         .         .         17 J,  nearly. 

Average  daily  profits     .         .         .         .  19.19-|-- 

Ex.  2.  Suppose  the  purchases  $12405.  Sales  effected  in  150  days,  $7609.  On  hand, 
$6800.  Required  the  total  gain,  the  average  gain  per  cent,  the  average  daily  sales,  and  the 
average  daily  gains. 

Ans.  Total  gain,  $2004.  Average  gain  per  cent,  ^^^jrii-  Average  daily  sales, 
$50,721.     Average  daily  profits,  $13.36. 

Ex.  3.  Purchased,  $8000.  Sold  in  90  days,  $5000.  Amount  on  hand,  $4000.  Re- 
quired the  daily  average  sales,  the  daily  average  profits,  the  total  gain,  and  the  gain  per 
cent. 

Ans.  Total  gain,  $1000.  Daily  sales,  $55.55 J.  Daily  profits,  $11.11^,  and  25  per 
cent.  gain. 

Ex.  4.  Purchased,  $4226.  Sold  in  60  days,  $1585.  Remaining  on  hand,  $3202. 
Required  the  daily  average  sales,,  the  total  gain,  the  daily  gain,  and  the  gain  per  cent. 

Ans.  Total  gain,  $561.  Daily  gain,  $9.35.  Daily  sales,  $26,416.  •  Average  gain, 
54§SJ  per  cent. 

Ex.  5.  Purchases,  $6895.  Sold  in  36  days,  $4011.  On  hand,  $2223.  Required  the 
total  gain  or  loss,  the  daily  sales,  the  daily  gain  or  loss,  and  the  gain  or  loss  per  cent. 

Ans.     Total  loss,  $661.    Daily  sales,  $11 1.41  f.    Daily  loss,  $18.36^,  and  14 -f- per  cent.  loss. 

The  same  rule  gives  the  per  centage  gain  or  loss  upon  any  amount  of  sales. 

Ex.  6.  Bought  candles  at  13  cents  and  sold  them  at  16  cents.  Required  the  gain  per 
cent.  Ans.     23y'3  per  cent. 

Ex.  7.  Bought  sugar  at  5^  cents  '^  lb  and  sold  it  at  7J  cents.  Required  the  gain  per 
cent.  Ans.     36y'*y  per  cent. 

Ex.  8.  Bought  molasses  at  25  cents  '^  gal.  and  sold  it  for  23f  cents.  Required  the  loss 
per  cent.  Ans.     5  per  cent. 

Ex.  9.     Bought  cloth  at  $2.62^  and  sold  it  at  $3.10.     Required  the  gain  per  cent. 

Ans.     18^^  per  cent. 

Ex.  10.  Sold  merchandise  at  10  per  cent,  advance  on  the  first  cost,  from  which  I  deduct 
5  per  cent,  from  the  face  of  the  invoice  for  prompt  payment.  Required  the  net  per  centage 
gain.  Ans.     4^  per  cent. 

Ex.  11.  Sold  merchandise  at  30  per  cent,  advance ;  from  the  face  of  the  invoice  deducted 
20  per  cent.     Required  the  net  per  centage  gain.  Ans.     4  per  cent. 

Ex.  12.  Sold  merchandise  at  50  per  cent,  advance  on  the  prime  cost.  Allowed  the 
retailer  40  per  cent,  discount  on  the  face  of  the  invoice.  What  is  my  net  per  centage,  gain 
or  loss  ?  Ans.     10  per  cent.  loss. 

Ex.  13.  A  manufacturer  sold  his  productions  by  retail  at  25  per  cent,  advance  on  the 
cost  of  production.  He  gave  up  the  retail  business,  and  agreed  to  furnish  retailers  at  20 
per  cent,  discount  upon  his  retail  prices.     Required  his  net  per  centage  gain. 

Ans.     Nothing. 

Note. — The  effect  of  discounts  in  such  cases  as  the  above  is  often  overlooked  by  the  inexperienced.    The  results  of  these 
examples  show  the  practical  importance  of  understanding  the  matter. 

198 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 


TO  FIND  OOMMISS^)N  AND  BEOKEEAGE. 

RULE. — For  1  per  cent,  point  off  two  places,  and  for  10  per  cent,  point  off  one  place,  to 
the  right  of  the  given  siim.     Take  aliquot  parts  for  the  intermediate  rates. 

Ex.  1.     Required  ^  per  cent,  brokerage  on  $1268. 

Ex.  2. 

Ex.  3. 

Ex.4. 

Ex.5. 

Ex.  6. 

Ex.  7. 

Ex.  8. 

Ex.  9. 

Ex.  10.  Eeceived  $5000  to  invest  in  a  bill  on  New  Orleans,  which  I  purchase  at  par. 
Required  the  amount  of  the  bill,  and  also  my  brokerage,  which  is  i  per  cent,  on  the  bill. 

Ans.     Bill,  $4975.124.     Brokerage,  $24,876. 

Ex.  11.  Received  $3000  to  invest  in  a  bill,  which  I  procure  at  2  per  cent,  discount 
Required  the  amount  of  the  bill,  also  my  brokerage,  which  is  i  per  cent,  on  the  face  of  the 
bill.  •Ans.     Bill,  $3045.68+.     Brokerage,  $15.23,  nearly. 

Ex.  12.  Net  proceeds  of  J.  Taylor  &  Co.'s  sales,  $2639.  They  desire  the  amount  in- 
vested in  a  bill  on  New  Orleans,  and  remitted  them.  Bills  are  1  per  cent,  premium.  My 
brokerage  is  J  per  cent,  on  the  investment.     Required  the  amount  of  the  bill. 

Ans.    $2600. 

Ex.  13.  Remitted  my  correspondent  in  Mobile,  $6000,  to  be  invested  in  cotton.  His 
commission  is  5  per  cent,  on  the  investment.  Required  the  amount  of  the  invoice  and  his 
commission.         ^  Ans.     Invoice,  $5714.29.     Commission,  $285.71. 

Ex.  14.  Received  from  G-.  Page,  $9000,  to  be  invested  in  hops.  My  commission  for 
purchasing  is  2  J  per  cent,  on  the  investment.  Required  the  amount  of  my  invoice  and  my 
commission.  Ans.     Invoice,  $8780.49.     Commission,  $219.51. 


i     / 

f                11 

1842. 

f 

1                If 

850. 

1       / 

1 

899. 

1^ 

1        commission 

on  1668.88. 

2^         / 

/                   // 

248.44. 

5          / 

/                   // 

1499.90. 

7i        1 

/                   // 

664.40. 

10          1 

/                   // 

779.49. 

Ans. 

$3.17. 

Ans. 

9.21. 

Ans. 

6.375 

Ans. 

8.99. 

Ans. 

20.861 

Ans. 

6.211 

Ans. 

74.995 

Ans. 

49.83. 

Ans. 

77.949 

ON    INTEEEST. 

The  legal  rate  of  interest  in  Pennsylvania,  New  Jersey,  Delaware,  Maryland,  Virginia, 
North  Carolina,  Tennessee,  Kentucky,  Ohio,  Indiana,  Illinois,  Missouri,  Arkansas,  District 
of  Columbia,  and  on  all  debts  due  the  United  States,  is  6  per  cent. 

In  New  York,  Michigan,  Wisconsin,  Iowa,  and  South  Carolina,  it  is  7  per  cent. 

In  G-eorgia,  Alabama,  Mississippi,  Texas,  and  Florida,  it  is  8  per  cent. 

In  Louisiana  it  is  5  per  cent. 

In  England  and  France,  5  per  cent.  ^ 

In  Canada,  Nova  Scotia,  and  Ireland,  it  is  6  per  cent. 
•  When  the  rate  of  interest  is  above  or  below  6  per  cent.,  first  find  the  interest  at  6  per 
cent.,  then  add  or  subtract  the  difference,  viz. :  For  5  per  cent,  deduct  i,  for  7  per  cent, 
add  i,  and  for  8  per  cent,  add  i  of  the  interest  found  at  6  per  cent. 

TO   FIND   THE   INTEREST  AT   SIX  PER  CENT.  FOR  MONTHS. 

RULE  I. — Remove  the  decimal  point  two  places  to  the  left  in  the  principal,  then  multi- 
ply by  half  the  number  of  months.     The  product  is  the  interest  required. 

199 


DUFF^S  BOOK-KEEPING.    . 


TO  FIND   THE   INTEREST   FOE  DAYS. 

RULE  II.* — For  60  days,  point  oiF  two  places  in  the  principal,  and  it  becomes  the  in- 
terest. For  6  days,  point  off  three  places,  and  the  principal  becomes  the  interest.  For  5, 
10,  15,  20,  25,  30,  &c.  days,  take  aliquot  parts  of  the  interest  found  as  above  for  60  days. 
For  other  numbers,  multiply  the  interest  found  as  above  for  6  days  by  i  the  given  number 
of  days.     The  product  is  the  answer. 


Example  1. 

Required  the  interest  of  $448.12  for  1  month. 

Ans. 

$2.24t 

ff 

2. 

If 

It 

229.70 

// 

2] 

oaos. 

// 

2.297 

If 

3. 

It 

It 

664.40 

// 

3 

// 

II 

9.966 

If 

4. 

It 

II 

712.60 

// 

4 

n 

II 

14.25t 

H 

5. 

It 

It 

964.30 

// 

5 

II 

II 

24.107t 

H 

6. 

II 

II 

667.60 

// 

6 

II 

II 

20.028 

It 

7. 

It 

It 

1267.70 

// 

7 

It 

II 

44.369t 

If 

8. 

It 

It 

1461.12 

// 

8 

II 

II 

58.444- 

H 

9. 

If 

It 

48.48 

// 

9 

II 

II 

2.181" 

If 

10. 

It 

It 

194.14 

// 

10 

It 

It 

9.707 

If 

11. 

It 

It 

3344.20 

It 

11 

It 

II 

183.931 

n 

12. 

If 

II 

1616.60 

It 

12 

It 

II 

96.996 

If 

13. 

It 

II 

1718.80 

It 

16 

II 

II 

137.504 

11 

14. 

It 

II 

2120.40 

II 

2 

years  and  1  mo 

II 

265.05 

It 

15. 

It 

II 

412.12 

II 

2 

// 

3   // 

II 

55.636t 

If 

16. 

It 

II 

1886.18 

It 

2 

// 

9   // 

II 

311.219t 

If 

17.. 

It 

II 

1854.54 

It 

3 

// 

8   // 

II 

407.998t 

It 

18. 

It 

II 

1794.92 

II 

4 

// 

5   // 

It 

475.653t 

It 

19. 

.  It 

If 

1763.30 

II 

4 

// 

8   II 

II 

493.724 

u 

20. 

It 

II 

2788.80 

It 

4 

// ' 

10   // 

It 

808.752 

II 

21. 

If 

II 

5. 

II 

60 

days. 

II 

.05 

It 

22. 

It 

II 

7. 

It 

6 

II 

II 

.007 

It 

23. 

It 

II 

180.48 

II 

5 

II 

It 

.15- 

It 

24. 

It 

II 

234.60 

II 

10 

II 

It 

.391 

It 

25. 

It 

II 

363.24 

II 

11 

II 

II 

.665t 

II 

26. 

If 

II 

1216.40 

It 

15 

II 

II 

3.041 

It 

27. 

It 

II 

1890.90 

II 

20 

II 

II 

6.303 

>l 

28. 

It 

II 

2412.64 

It 

22 

II 

II 

8.846t 

If 

29. 

It 

II 

1518.90 

If 

25 

II 

II 

6.328t 

It 

30. 

It 

II 

1920.60 

It 

30 

II 

II 

9.603 

II 

31. 

II 

II 

1266.48 

It 

33 

II 

II 

6.965t 

It 

32. 

If 

•1 

2424.66 

It 

35 

II 

II 

14.143t 

It 

33. 

II 

II 

1098.48 

It 

40 

It 

II 

7.323t 

It 

34. 

II 

II 

726.24 

If 

44 

II 

II 

5.325t 

If 

35. 

If 

.  II 

960.48 

It 

50 

II 

II 

8.004 

If 

36. 

It 

>i 

1566.96 

II 

63 

II 

It 

16.453- 

. 

It 

37. 

II 

>i 

1399.97 

II 

66 

II 

II 

15.399- 

- 

II 

38. 

It 

It 

1224.12 

II 

1 

II 

It 

.204- 

- 

If 

39. 

ff0 

II 

369.18 

II 

2 

II 

II 

.123- 

- 

It 

40. 

11 

It 

96.84 

II 

7 

II 

II 

.112- 

- 

It 

41. 

It 

It 

636.69 

II 

8 

'  II 

II 

.848- 

- 

It 

42. 

II 

II 

224.42 

It 

12 

II 

II 

.448- 

■ 

If 

43. 

II 

It 

846.60 

It 

13 

II 

It 

1.834- 

" 

*  This  Rule,  though  admitted  to  be  slightly  inaccurate,  has  been  sustained  by  judicial  decisions,  and  it  is  almost  universally 
ased  by  merchants  in  this  country.  It  is  based  on  the  supposition  of  the  year  being  divided  into  twelve  equal  months  of  30 
days  each — 360  days.    It  therefore  gives  the  interest  jf  3-  =  73-  part  too  much. 

200 


ON   COMMERCIAL  CALCULATIONS.— PART  III. 


Example  44. 

Required  the  interest  of  ^60.84  for  17  days. 

Ans. 

$2,722+ 

H         45. 

//                    //           1236.18   //   19     // 

II 

3.914+ 

//         46. 

//                    //           1122.22   //   27    // 

1/ 

5.049+ 

//         47. 

•  //                    //           1860.48   //   29     If 

If 

8.992+ 

//         48. 

n                   u            246.24  //   37    // 

If 

1.^8+ 

//         49. 

//                    //             321.21    //   39     // 

If 

2.087+ 

50. 

//                   i,          9666.       //  40    // 

It 

64.44 

Ex.  51.     A  note  is  dated  January  27,  1853,  @  60  days.     Required  the  unexpired  time, 
February  27.  Ans.     32  days. 

Ex.  52.     A  note  dated  March  30,  @  90  days.     Required  the  unexpired  time,  May  23. 

Ans.     39  days. 

Ex.  53.     A  note  dated  31st  March,  @  3  months.     Required  the  unexpired  time  on  the 
1st  June.  Ans.     32  days. 

Ex.  54.     A  note  dated  October  31,  1852,  @  4  months.     Required  the  unexpired  time, 
February  1,  1853.  Ans.     30  days. 

Ex.  55.     A  note  for  $1368.72,  dated  10th  September,  1852,  having  12  months  to  run,  is 
discounted  on  the  21st  Ojctober.     Required  the  interest  on  the  unexpired  time. 

OPERATION. 

Year.  Month.  Day. 

Due     .     1853     .     .       9     .     .     13 
1852     .     .     10     .     .     ^1 


10     .     .     23  unexpired  time.* 

Ans.     Interest  on  the  same,  $73,682+. 

Ex.  56.  A  note  for  $360,  dated  May  31,  @  6  months,  is  discounted  September  14.* 
Required  the  unexpired  time  and  interest  for  that  time. 

Ans.     Time,  80  days.     Interest,  $4.80. 
Ex.  57.     A  note  for  $960.96,  dated  30th  June,  @  90  days,  is  discounted  September  9. 
Required  the  unexpired  time  and  the  discount. 

Ans.     Unexpired  time,  22  days.     Disecant.  $3,523+. 

It  now  remains  to  notice  what  is  called  Partial  Payments — where  notes  or  bonds  are  paid 
by  installments.     There  are  two  rules  for  computing  the  interest  in  such  cases. 

I.  The  Mercantile  Rule. — Find  the  amount  of  the  principal  at  the  date  of  settlement ; 
then  find  the  amount  of  each  payment  to  the  same  date ;  subtract  the  sum  of  these  amounts 
from  the  amount  of  the  principal.     The  remainder  is  the  balance  due. 

This  is  the  principle  upon  which  Morris'  Account  Current  is  settled.     (Page  114.) 

II.  The  Legal  Rule. — Compute  the  interest  on  the  principal  to  the  time  of  the  first 
payment,  or  such  payments  as,  taken  together,  exceed  the  interest  then  due.  From'  the 
amount  of  the  .principal  and  interest  subtract  the  payment.  The  remainder  is  the  new 
principal.     Proceed  in  the  same  manner  with  all  subsequent  payments. 

The  Courts  of  the  United  States  and  most  of  the  State  Courts  have  adopted  this  rule. 

No  person  of  ordinary  attainments  in  Arithmetic  will  have  any  difficulty  in  applying  either 
of  these  rules.  Our  object  in  introducing  them  here  is  to  show  the  widely  different  results 
that  will  often  arise  from  their  application.  The  following  transaction,  which  recently  came 
into  our  hands  for  settlement,  will  serve  to  show  it : 

*  See  note  on  page  200. 

201 


DUFF^S  BOOK-KEEPING. 

Bond  for  $900  on  interest  at  6  per  cent,  commencing  May  8, 1838,  was  settled  Sept.  8. 1852. 

Payments  as  follows,  viz  : 


1st  payment,  May     8, 
2d         //  •       June    4, 

3d 

II 

Jan.     9, 

4th 

II 

June  10, 

5tli 

II 

Jan.   15, 

6th 
7th 

II 
II 

May  25, 
June  12, 

8th 
9th 

II 

II 

July    .2, 
Aug.  19, 

10th 
11th 

II 
II 

Sep.     1, 
Nov.     1, 

12th 

II 

Dec.     7, 

13th 

II 

Feb.  16, 

14th 
15th 

II 
II 

.  Sept.  24, 
Oct.   27, 

16th 
17th 

II 
II 

July     6, 
Oct.   14, 

18th 

II 

Mar.  20, 

19th 

II 

Mar.     2, 

20th 

II 

May     4, 
July     4, 
Sep.  30, 
Apr.  15, 
Mar.     1, 

21st 
22d 

23d 
24th 

II 
II 
II 
II 

25th 

II 

Sep.     7, 

1839 

. 

.  •     .  $168.. 

1839     . 

;  '  .    .     86. 

1840 

.      50. 

1840     . 

104. 

1841 

.•      28. 

1841     . 

50. 

1841 

.        6. 

1841     . 

5. 

1841 

.      20. 

1841     . 

20. 

1841 

.       15. 

1841    .. 

10. 

1842 

.       10. 

1842     . 

19. 

1845 

.       80.50 

1846     . 

25. 

1846     •   . 

.       50. 

1847     . 

25. 

1848 

.       40. 

1848     . 

20. 

1848 
1848     . 

.       35. 
43.50. 

1849 

. 

.       58. 

1850     . 

48. 

1852 

. 

9. 

Upon  computing  the  interest  on  the  above  transaction  by  the  Mercantile  Rule  it  leaves  a 
balance  due  on  the  mortgage,  of  $88.07.  By  the  Legal  Rule  we  find  the  balance  $266.37, 
making  a  difi'erence  in  the  settlement  of  this  $900  mortgage  of  $178.30.  It  must  be  ad- 
mitted, however,  that  the  annual  rests  usually  made  by  merchants  in  settling  accounts  would 
have  made  a  difi'erence  in  favor  of  the  creditor;  but  as  these  rests  were  not  made  at  the  proper 
time  we  could  not  go  back  into  the  account  and  make  them  afterwards.  It  is  to  be  observed, 
however,  that  the  Legal  Rule,  in  this  and  all  similar  cases,  gives  the  creditor  compound  in- 
terest in  its  most  exacting  form,  as  every  time  the  debtor  makes  a  payment  the  interest  is 
compounded  against  him.  I  could  have  adduced  many  other  examples  to  show,  in  the  most 
striking  manner,  the  difference  resulting  from  these  different  methods  of  computing  interest 
— to  show  that  the  difference  is  always  increased  in  an  accelerated  ratio  as  the  payments  are 
multiplied  or  the  time  prolonged.  In  the  case  of  Clancerty  vs.  Latouche,  1  Ball  &  Beat. 
420,  the  difference  resulting  from  the  different  methods  of  computing  interest  was  about 
£24000  sterling.  It  may  be  asked  what  remedy  is  to  be  proposed  in  the  confusion  and  un- 
certainty that  exists  in  the  law  relating  to  this  matter  ?  We  answer.  None.  It  is  only 
proposed  to  make  all  concerned  aware  of  the  difference  resulting  from  the  two  methods,  and 
leave  the  parties  interested  to  govern  their  transactions  accordingly.  If  I  mistake  not, 
the  law  allows  the  debtor,  when  paying  money  to  a  person  to  whom  he  is  indebted  on  two 
accounts,  to  appropriate  the  payment  to  the  discharge  of  whichsoever  account  he  pleases — 
the  one  which  is  the  most  burthensome  to  him,  the  one  which  bears  interest — provided  he 
makes  his  election  at  the  time  of  payment.  If  he  does  not  do  so,  the  creditor  can  make  his 
election,  and  will,  of  course,  apply  the  payment  to  discharge  the  interest  first,  and  the  surplus 
to  paying  the  principal.  If  neither  party  makes  an  election,  I  believe  the  law  will  do  it  for 
them,  and  will  apply  the  payments  to  discharge  that  debt  which  bears  hardest  upon  the  debtor. 

It  will  be  seen  that  the  debtor  on  the  above  mortage  made  eight  payments  upon  it  in  one 
year,  and  the  creditor,  availing  himself  of  the  Legal  Rule  at  the  time  of  settlement,  com 
pounded  the  interest  against  him  eight  times  in  that  year.     Nothin 

202 


but  ignorance  of  the 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

consequences  would  permit  any  debtor  to  make  payments  in  sucli  a  manner.     What  I  have 
now  stated  will,  it  is  to  be  hoped,  make  the  matter  fully  understood. 

ADJUSTMENT  OF  INTEREST,  GAIN,  LOSS,  &c. 

For  Rule  se#page  180. 

Example  1.  Kay's  paid  up  capital  for  12  months  is         .  .  $12000. 

He  drew  out  for  6  months  .         .         .         .     $600. 
Long's  paid  up  capital  for  one  year  was       .  $14000. 

He  drew  out  for  5  jnonths  ....     $800. 

Required  the  Journal  entry  for  adjusting  the  interest  between  the  partners  without  pass- 
ing it  into  the  interest  account. 

Answer.  Kay  Dr.    .         .         ,         .         .         .         .     $59. 

To  Long $59. 

Ex.  2.  C.  paid  in  $8000  for  1  year  and  drew  out  $400  for  9  months. 

D.  paid  in  $16000  for  1  year  and  drew  out  $800  for  3  mos.and  $400  for  8  mos 

E.  paid  in  $14000  for  1  year  and  drew  out  $11000  for  4  months. 

F.  paid  in  $11000  for  1  year  and  drew  out  nothing. 
Required  the  Journal  entry  for  adjusting  the  interest  between  the  parties. 

Ans.  Sundries,  Dr.  to  D $263.50 

C.          .         .         ...         .         .         .  $206.50 

E •         .        .         .  48.50 

F 8.50 

The  same  rule  will  adjust  lost  time  between  mechanics  who  are  in  partnership. 

Ex.  3.  Three  mechanics,  X.,  Y.,  &  Z,  equal  partners  in  their  business,  with  the  under- 
standing that  each  is  to  be  charged  with  $1.50  per  day  for  all  lost  time.  At  the  time  of 
settlement  it  was  found  that  X.  had  lost  24  days,  Y.  6  days,  and  Z.  32  days.  Required 
the  Journal  entry  for  adjusting  the  matter  between  them. 

Ans.  Sundries  To  Y $22. 

X.  . .     $  5. 

Z.       .        .        . 17. 

Ex.4.  N.is  |,0.|,R^,and  Q.  f, proprietors  in  the  business.  N.lost  24,0.  48,and  P.6 
days.  Q.  lost  no  time.  Each  was  chargeable  with  $1.50  per  day  for  lost  .time.  Required 
the  Journal  entry  for  adjusting  the  matter. 

Ans.  0.  To  Sundries $42.75 . 

//  N.    .  •      .        .        :        .        .        •.  $7.87 

//P.          ...         ....  5.63 

//   Q.       .                .         .         .         .         .  29.25 

Ex..5.  R'.,  S.,  T.,&  U.  dissolved  partnership,  and  divided  all  their  effects,  when  it  was  found 
that  the  following  balances  were  due  to  each,  viz. : 

R.         .         .         .         $760.  T.  '      .        .         .        $582. 

S.    .         .         .         .      470.  U.  .  .      .         .         ,       680. 

The  books  were  kept  by  single  entry.  The  partners  are  equal  in  gain  or  loss.  Required 
the  Journal  entry  that  will  be  made  when  the  sums  are  paid  and  received  for  final  settlement. 

Ans.  Sundries  To  Sundries        .         .     $194. 

R.    .         . $137. 

U .  57. 

To  S $153. 

//   T 41. 

Ex  6.  v.,  "Vy.,&X.  dissolved  partnership,  and  after  dividing  all  their  effects  there  was  a 
balance  due  V.  of  $940 ;  due  W.  $90.    X.  was  indebted  $140.    TU  firm  ow€S  a  note  of  $268. 

203 


DUFF^S  BOOK-KEEPING. 

The  partners  are  equal  in  gain  or  loss.     Required  tlie  sums  to  be  paid  and  received  among 
tlie  partners,  which  will  leave  theni  all  to  share  equally  in  the  loss,  and  take  up  their  note. 
Ans.  V.  receives  $554.         W.  pays  $296.         X.  pays  $526. 

Journal  entry  when  the  money  is  paid  and  received : 

Sundries  To  SundridI,  $822. 
Bills  Payable,  for  note  taken  up         .         .         .     $268. 
V.  for  amount  paid  him         ....  554. 

To  W.,  for  amount  refunded  .         .         .  $296. 

//  X.  //  //  ...  526. 

Ex.  7.  Gr.  is  I,  H.  is  i,  I.  I,  and  J.  I,  partners  m  business.  After  dissolution  and  divi- 
sion of  all  their  effects,  their  accounts  stood  as  follows : — Balance  due  Gr.  is  $28,  H.  $84,  I. 
is  indebted  to  the  firm  $44,  and  J.'s  account  is  balanced.  Required  the  Journal  entry  that 
will  be  made  in  the  books  of  the  firm,  when  the  amounts  are  paid  and  received,  for  the  final 
settlement  between  the  partners. 


Ans.  Sundries  To  Sundries,  $78. 

a 

$2.50 

H.      .         .         .        . 

75.50 

To  I. 

$61. 

//  J.        .         .         . 

17. 

Ex.  8.  K.,  L.,  M.,and  N.  partners  in  business,  kept  their  books  by  single  entry,  and  after 
dissolution  and  division  of  all  their  effects,  they  find  their  accounts  standing  as  follows  upon 
their  books,  viz.: — There  is  a  balance  due  K.  of  $280;  due  L.  $840;  M.  is  indebted  to  the 
firm  $440  ;  N.'s  account  stands  balanced.  K.'s  original  capital  was  $3400 ;  L.^s,  $1200 ; 
M.'s,  $2220 ;  and  N.'s,  $2180.  The  profit  or  loss  was  to  be  divided  in  proportion  to  the  original 
paid  up  capital.  Required  the  Journal  entry  that  will  be  made  in  the  books  of  the  firm,  when 
the  amounts  are  paid  and  received,  to  effect  the  final  settlement  between  the  partners. 

Ans.  Sundries  To  Sundries,  $772.44 

K.  for  amt.  received  .         .     $23.11 

L.         ff  If  .         .         749.33 

To  M.  for  amt.  paid  in  .         .  $607.73 

//  N.         //  //  .  164.71 

Ex.  9.  C  Rush,  R.  Lyell,  and  F.  Fish,  partners  in  business,  kept  their  books  for  several 
years  by  single  entry.  They  finally  closed  them,  made  a  dividend  of  the  profits,  and  re- 
opened them  by  double  entry,  which  necessarily  exhibited  each  partner's  net  capital  at  this 
date.  Some  time  afterwards.  Rush  furnished  their  book-keeper  with  an  account  of  $840, 
which  he  had  withdrawn  for  his  own  use  from  the  firm,  previous  to  the  closing  of  the  old 
books,  and  which  he  had  kept  a  private  account  of  without  entering  it  to  his  account  in  the 
books  of  the  firm.  Rush  and  Lyell  were  each  i  and  Fish  i  gain  or  loss  in  the  business. 
Required  the  Journal  entry  to  settle  the  above  $840  between  them  on  their  new  books. 

Ans.  Rush  To  Sundries,  $630. 

To  Fish $420. 

//  Lyell       ....  210. 

Ex.  10.  On  July  1,  1853,  W.  Wood  retires  from  the  firm  of  Hay  &  Wood.  Their  Bal- 
ance Sheet  is  made  out  for  settlement.  We  find  their  Profit' &  Loss  Account  Dr.  $1280,  Cr. 
$2450,  and  their  Commission  Account  is  credited  $3400,  in  addition  to  which  it  is  entitled 
to  5  per  cent,  commission  on  sales  effected  on  the  following  consignments,  which  are  only 
partly  sold,  viz. : — On  R.  Cargo's  sales,  which  is  Br.  for  charges  posted,  $400,  and  Cr.  for 
sales  effected,  $7800;  due  by  average  May  1,  1853.  M.  Loder's  sales  is  Br.  for  charges 
posted,  $300;  Cr.  for  sales  effected,  $9400;  due  by  average  September  1,  1853. 

Required  the  Ledger  specification  exhibiting  the  disposition  of  the  above  consignments, 
with  the  commission  and  interest  on  the  same  in  the  partners'  Balance  sheet.  (See  Birec 
tions,  page  177.) 

204 


ON  COMMEKCIAL  CALCULATIONS.— PAET  III. 

Then  suppose  Hay  continues  the  business  in  his  own  name  and  completes  the  sales  of 
Cargo's  goods — total  sales,  $9800.  He  also  completes  Loder's  sales — $10,400.  The  charges 
posted  are,  in  both  cases,  as  above  stated.  Under  the  Ledger  specification  already  made, 
exhibit  Hay's  Commission  Account,  re-opened  and  credited  for  the  commission  on  the  final 
settlement  of  the  consignments. 

Ans.  The  firm  will  owe  Hay  $70.10  int. 

The  student  will  write  out  the  Ledger  specification. 


BUYING   AND  SELLING   STOCKS,   &c. 

Ex.  1.  Required  the  value  of  Hudson  River  Railroad  Stock,  which  makes  a  dividend 
of  8%  per  annum,  payable  semi-annually,  money  being  worth  6  per  cent,  per  annum,  pay- 
able semi-annually. 

Solution.— 6  :  100  :  8  : :  $133^.  Ans.  That  is,  $100  of  stock  is  worth  $133^,  or  33J 
per  cent,  advance. 

Ex.  2.  "What  is  the  value  of  the  Citizens'  Bank  Stock,  which  has  made  a  dividend  of  5 
per  cent,  per  annum?     Money  worth  6  per  cent.  Ans.  16f  per  cent,  discount. 

Ex.  3.  Bought  $500  in  Exchange  Bank  Stock,  which  divides  9  per  cent,  dividend  per 
annum.  Money  being  worth  6  per  cent,  interest.  I  am  to  pay  the  amount  in  Tennessee 
money  which  is  at  3  per  cent,  discount.  Required  the  amount  of  Tennessee  money  it  will 
take  to  pay  for  the  stock.  Ans.  $773.20,  nearly. 

Ex.  4.  Sold  $2000  of  City  Bank  Stock,  which  divides  7j  per  cent,  per  annum.  Received 
in  part  payment  $1000  of  Winchester  Railroad  Stock,  which  divides  4 J  per  cent,  per 
annum.  Money  worth  6  per  cent,  interest.  Required  the  balance  I  am  to  receive  in 
money.  Ans.  $1750. 

Ex.  5.  London  Bridge  Stock  is  said  to  divide  2  per  cent,  per  annum.  Money  in  England 
being  worth  5%  interest.     Required  the  value  of  this  stock.  Ans.  60%  discount. 


DOMESTIC  AND  FOEEIGN  EXCHANGES. 

Ex.  1.  Bought  a  bill  on  Boston,  for  $780,  at  1  %  premium.     What  must  I  pay  for  it? 

Ans.  $787.80. 

Ex.  2.  Bought  a  bill  on  New  Orleans,  for  $1680,  at  f  per  cent,  discount.  What  must  I 
pay  for  it?  Ans.  $1667.40. 

Ex.  3.  Sold  my  bill  on  St.  Louis,  for  $1840,  for  li%, discount.  Required  the  amount 
I  shall  receive.  Ans.  $1812.40. 

Ex.  4.  Sold  my  bill  on  London,  for  £450  sterling,  for  8  per  cent,  premium.  Required 
the  amount.*  Ans.  $2160. 

Ex.  5.  Bought  a  bill  on  London,  for  £1266  15s.t  at  9i%  premium.  What  shall  I  have 
to  pay  for  it?  Ans.  $6164.85. 

Ex.  6.  I  owe  Holderness  &  Chilton,  of  Liverpool,  $7218,  net  proceeds  of  sales  of  mer- 
chandise efi'ected  for  them,  which  I  am  to  remit  them  in  a  Bill  of  Exchange  on  London  for 
such  amount  as  will  close  the  transaction,  less  i  per  cent,  on  the  face  of  the  bill,  for  my 


*  Rule.— To  change  sterling  money  into  Federal  currency,  multiply  by  41.    To  change  Federa*  currency  into  sterling, 
divide  by  4f  •  •  -        ' 

t  If  there  be  shillings  and  pence,  change  them  into  the  deoiraal  of  a  pound,  and  multiply  as  before. 

205 


DUFFS  BOOK-KEEPING. 

commission  for  investing.    Bills  on  London  are  8  per  cent,  premium.    Required  the  amount 
of  the  bill,  in  sterling,  to  be  remitted.  Ans.  £1500  5s.  Gfd. 

Ex.  7.  A.,  of  Pittsburgh,  sent  articles  to  the  World's  Fair,  in  London,  which  were  after- 
wards sold  by  B.,  of  London,  on  A.'s  account — net  proceeds,  £1266  15s.  sterling.  B.  was 
instructed  to  invest  this  amount  in  Bills  on  New  York,  and  remit  to  A.,  which  was  accord- 
ingly done.  B.  charged  i  per  cent,  brokerage,  on  the  face  of  the  bills,  for  investing,  and 
purchased  the  bills  at  7  per  cent,  discount.  Required  the  amount  of  the  bill  A.  must  re- 
ceive in  Federal  currency  to  close  the  transaction.  Ans.  $6037.53,  nearly. 

We  confine  our  illustrations  of  Foreign  Exchange  to  Great  Britain,  because  a  knt)wledge 
of  it  is  necessary  to  understanding  the  accounts  in  this  system  of  Book-keeping.  But  to 
treat  of  Exchange  upon  all  foreign  countries  would  require  space  which  we  can  appropriate 
to  matters  of  greater  interest  to  the  majority  of  our  patrons. 


INDIRECT    EXCHANGE 

Efi'ects  a' remittance  through  one  distant  place  to  another.     It  is  sometimes  termed  the 
Arbitration  op  Exchange. 

Ex.  1.  I  wish  to  remit  George  Wildes  &  Co.,  of  London,  £3600  sterling.  Exchange  on 
London,  in  New  York,  is  10  per  cent,  premium.  Exchange  on  London  can  be  obtained  at 
Halifax,  Nova  Scotia,  for  9  per  cent,  premium.  New  York  Bills  on  Halifax  are  i  per  cent, 
discount.  If  I  remit  a  draft  to  Halifax,  and  pay  my  agent  i  per,  cent,  for  investing  it  in 
Bills  on  London,  what  will  I  gain  over  the  direct  Exchange? 

SOLUTION. 

£3600  sterling  =  $16000  @  10%  prem.  =  cost  of  the  direct  Exchange    .         .  $17,600.00 
Halifax  Bill  on  London,  @  9  %  +  ^%  for  investing      .         .  $17,520.00 
i%  discount  for  New  York  on  Halifax   .         .         .         .  43.80 

Cost  of  the  indirect  Exchange 17,476.20 

Gain $123.80 

Ex.  2.  I  have  to  remit  £6300  to  London.  ]New  York  Bills  on  Lpndon  are  10^  per  cent, 
premium.  New  York  on  St.  John,  New  Brunswick,  f  per  cent,  discount.  St.  John  on 
London  is  91  per  cent,  premium.  If  I  pay  my  agent  in  St,  John  i  per  cent,  for  investing, 
what  will  I  gain  by  the  indirect  Exchange  ?  Ans.  $370.48. 


INSURANCE. 


Insurance  is  a  security  given  by  underwriters  or  insurance  companies  to  the  owners  of 
ships,  houses,  or  other  property,  to  indemnify  them  in  case  of  loss  by  fire  or  shipwreck. 

The  premium  is  always  a  percentage  on  the  value  insured.  The  written  and  printed 
document  held  by  the  party  insured  as  evidence  of  the  contract  of  indemnity  is  called  the 
Policy. 

Ex.  1.  If  I  gQt  my  house  insured  for  $4500,  at  1^  per  cent,  premium,  what  shall  I  pay 
as  premium?  Ans.  $56.25. 

20G 


ON  COMMERCIAL  CALCULATIONS.—PART  III. 

Ex.  2.  Insured  my  ship,  the  Chieftain,  for  $65000,  to  Canton  and  back,  for  4i  per  cent, 
premium.     What  will  it  amount  to  ?  Ans.     $2762.50. 

Ex.  3.  Insured  the  ship  Ironwood,  for  $48000,  at  2^  %,  and  gave  my  note  for  the  pr.e- 
mium.  Before  the  note  was  paid  the  ship  was  lost,  and  the  insurers  paid  the  loss.  Required 
the  amount  I  received,  taking  up  my  note  as  part  payment.  Ans.     $46800. 

Ex..  4.  Insured  the  ship  Rbscoe,  (which  was  worth  $47500,)  for  $45000  at  2  per  cent, 
policy,  $1,  to  Liverpool  and  back  to  New  York.  Freight  out  was  $12500.  Expenses  at 
Liverpool,  $4500.  The  ship  was  lost  on  her  return.  The  insurance  company  has  paid  the 
insurance.  Required  each  t)wner's  share  of  the  net  proceeds  of  the  vessel.  W.  Hay  is  i, 
myself  I,  and  C.  Hartwell  i. 

Ans.     My  share,  $13024.75.     Hay^s,  $13024.75.     Hartwell's,  $26049.50. 

Ex.  5.  I  wish  to  insure  merchandise  on  board  the  ship  Chieftain,  for  San  Francisco. 
Amount  of  invoice,  $12447 ;  cost  of  policy,  $1 ;  premium  is  2  per  cent.  Required  the  pre- 
mium, and  the  sum  upon  which  we  insure  to  cover  the  premium  and  policy.  (See  Note  3, 
page  84.)  Ans.     Amount  to  cover,  $12702.04.     Premium.  $254.04. 


SIMPLE  EQUATIONS. 

RULE.— See  page  68. 

Ex.  1.  Received  from  John  Fowler,  for  sale  on  commission,  900  bbls.  flour,  upon  which 
paid  freight  and  charges,  $14.  ^fter  charges,  storage,  Ql  cts.  ^  bbl.  Laborers'  wages,  for 
storing  and  hoisting  out,  $2.50.  Commission  for  selling,  2  J  %.  Sales  effected  as  follows, 
viz.  • 

May    1,    40  bbls.  (^  $4.50,  for  cash; 

w     19,    60     //     @    4.75,  on  acct.  (§  30  days ; 
June  2,  150     //     @    4.80,  on  note,  @  60     // 
//       2,    50     1/     @    4.50,  for  cash; 
ff     11,  500     //     @    4.75,  on  note,  @  90  days; 
//    21,    50     //     @    4.80,       //         @  30    // 
//     30,    50     //     @    4.50,  for  cash. 

Required  the  account  sales  showing  the  net  proceeds,  and  when  due. 

Ans.     Net  proceeds,  $4071.     Due,  August  13th. 

Ex.  2.  Received  from  Lyon,  Haven  &  Co.  for  sale  on  consignment,  150  bbls.  mackerel 
and  40  bbls.  salmon,  upon  which  paid  freight  and  cartage,  $190.  Labor  in  storing,  $1.70. 
Commission  on  the  sales,  5  per  cent.     Sales  effected  as  follows,  viz : 

June   7,    40  bbls.  mackerel,  @  $12.50,  on  acct.  @  3  mos. 

//     19,    10     //       salmon,     @    18.75,  on  note,  @  30  days; 
July    1,      5    //         //  @    18.00,  for  cash; 

tf     17,  100     //     mackerel,  @    12.75,  on  note,  @  60  days; 

//     29,    16     //      salmon,     @    18.75,  on  acct.  @  30  days. 

State  the  account  sales,  showing  the  net  proceeds,  when  due  by  equation,  and  the  balance 
of  goods  on  hand. 

Ans.     NtC  proceeds,  $2043.175.     Due,  September  5. 

Ex.  3.  Received  from  George  Carver,  for  sale  on  his  account,  80  tons  Iron.  Freight 
and  charges  paid,  $74.     Commission  for  selling,  5  per  cent,  which  was  sold  as  follows  :''' 

*  The  sales  being  all  at  6  months,  we  may  equate  between  the  days  of  sale. 

207 


DUFF'S  BOOK-KEEPING. 

May  20,  Sold  at  6  months,  on  acct.  12  tons,  @  $65. 

//      31,           //  //           II 

June  20,           //  n '         u 

II     30,          //  //          // 

July  11,*         //  //           // 

u      11, 

//   11, 

II      19, 


//      //     // 

//   11,     //      //     // 

II  II  II 


We  are  to  pay  Carver  the  net  proceeds  in  a  note  payable  6  months  after  date.  Required 
the  amount  of  it,  and  the  day  on  which  it  must  be  dated.  Also,  the  account  sales,  showing 
the  amount  on  hand. 

Ans.     Date  of  note,  for  $4494.55,  June  22.     On  hand,  6  tons. 

Ex.4.     Sold.John  Taylor  &  Co.: 

April  30,  Invoice  of  Merchandise,  @    4  months,  $620.49 

May     1,        //  //  @    6       //  730.50 

//      30,         //  //  @  30  days         480.80 

July     1,         //  //  @  60     //  560.95 

//     11,         //  //  @  60     //  330.40 

//      11,        //  //  @    4  months,    500.00 

Required  the  day  upon  which  the  above  account  will  fall  due,  by  average. 

Ans.     September  16. 

Ex.  5.  Received  of  Charles  Page,  for  sale  on  his  account,  30  hhds.  N.  0.  sugar,  upon 
which  paid  freight,  $60 ;  cartage,  $7.50 ;  storage  $9.  Commission  and  guarantee,  5  per 
cent.     Sales  effected  as  follows : 

Aug.    1,  Sold,  on  note  @  60  days,  4  hhds.  4660  lbs.  less  10  per  cent,  tare,  52-  cts. 
//    30,     //  //        @    3  mos.    6     //      5880    //  //  n        //     5i-    // 

II     30,     //      for  cash,  3     //      3890    //  //  //        //     5i    ;v 

//     30,     m      on  acct.  @  60  days,  7     //      6990    //  //  //        //     5f    n 

Sep.  16,     //      for  cash,  4     //      4880    //  //  //        //     5i    // 

//      30,     II      on  note,  @    3  mos.  6     //      5960    //  //  //        //     5|    n 

Required  the  account  sales,  exhibiting  the  net  proceeds  and  the  day  when  the  same  is 
due,  by  average.  Ans.     Net  proceeds,  $1424.78,     Due,  November  1. 


ST0EA6E  EQUATIONS. 

Equation  is  applied  to  the  storage  of  property  by  the  following 

Rule. — Multiply  the  number  of  packages  by  the  number  of  days  that  they  have  been  in 
store.  Divide  the  product  by  30;  the  quotient  is  the  number  of  packages  subject  to  one 
month's  storage.^ 

Ex.  1.  I  have  stored  1500  bbls.  flour  for  4  days.  Required  the  number  of  bbls.  subject 
to  one  month's  storage.  •fi 

Solution.— 1500  X  4  days  =  6000  -^30  =  200  bbls.     Ans. 

bbls.  bbls.  days.    days. 

Proof.— 1500  :  200  :  :  30  :  4. 

*  This  and  the  two  following  sales  may  be  added  together  and  make  but  one  product. 

X  Note.— Where  a  number  of  packages  are  received  and  delivered  at  different  dates,  proceed  as  in  Compound  Fellowship. 

208 


ON   COMMERCIAL   CALCULATIONS.— PART  III. 

Ex.  2.     May    1,  Received  200  bbls.  flour.  May  10,  Sold  150  bbls. 
//     16,        //        300     //        //  n     18,     //       30  *  n 

June   1,         '/         400     //        //  June  10,     n     550     // 

July  13,        //        500     //        //  July  30,     //     660     // 


Aug.  20,         //        700     //        //  Aug.  30,     it     700 


// 


Required  the  number  of  bbls.  subject  to  one  month's  storage  on  August  31. 

Ans.     1269  bbls 

Ex.  3.     Received  the  following  consignments  from  J.  L.  Starr  &  Co.,  viz. : 
Sept.    1,  Received  15  hhds.  sugar.  Sept.  20,  Sold  12  hhds.  sugar. 

//      12,         //         80  bbls.   molasses.  Oct.      1,     //     40  bbls.    molasses. 

/'     30,         //         30  hhds.  tobacco.  Nov.     1,     //     43  hhds.  sugar. 

Oct.      6,         '/         40     //      sugar.  //      10,     //     60  bbls.    molasses. 

//      20,         //         50  bbls.   molasses.  Dec.     1,     //     65  hhds.  tobacco. 

Nov.  30,         //         40  hhds.  tobacco. 
Required  the  number  of  hhds.  and  bbls.  subject,  each,  to  one  month's  storage,  Dec.  1. 
Ans.     48  hhds.  sugar.     160  bbls.  molasses.     63  hhds.  tobacco. 


COMPOUND    EQUATIONS. 

For  Rule,  see  note  on  page  116. 

Ex.  1.  May  1,  1866,  received  of  R.  Morris,  London,  40  bales  carpet.  Paid  freight  and 
other  charges  in  cash,  81600.  Sold  the  carpets  the  same  day,  on  note  at  6  mos.  for  $6000. 
Commission  and  guarantee,  5^^.  Required  the  day  on  which  R.  Morris'  net  proceeds  are 
due  in  cash.  Ans.     January  11,  1867. 

Ex.  2.  Received,  May  30,  of  C.  Hartwell,  of  Boston,  50  cases  Lowell  prints.  Paid 
freight  and  charges  in  cash,  8120.  June  2,  accepted  his  draft  on  me  at  30  days^  sight  for 
$2000.  On  the  same  day  sold  the  50  cases  prints,  on-  note  at  4  mos.  for  85400.  Commis- 
sion and  guarantee,  5%.  Storage,  810.  Required  the  day  on  which  the  balance  of  the  net 
proceeds  will  be  due  in  cash.  Ans.     Balance,  83000.     Due,  Dec.  5,  1866. 

Ex.  3.  July  2,  1866,  sold  R.  Manly  an  invoice  of  dry  goods,  amounting  to  82800,  on 
account,  at  4  mos.  On  the  same  day  I  bought  of  him  an  invoice  of  flour,  at  30  days,  for 
81800.  I  am  to  have  his  note  at  4  mos.  for  the  balance.  Required  the  day  on  which  this 
note  must  be  dated  so  that  neither  party  will  lose  interest. 

Ans.     Note  for  81000.     Balance  will  bear  date  December  15,  1866. 

Our  account  with  Robert  Carver  is  as  follows : 

Sold  him  goods  on  account,  at  3  months     .         .         .  8600.00 
//  If         .         .        .        550.50 

//  //     .    '    .         .         .    449.80 

//  //  .         .         .         500.49 

II  II     ...         .    400.21 

Crs. 
Received  cash  on  account      ....  8250.00 
//  //  //....         300.00 

//         his  order  on  John  Doe,  at  10  days       350.00 
//         cash  on  account      ....    200.00 
Required  the  day  on  which  the  balance  of  the  account  will  fall  due  by  average. 

Ans.    July  14. 
Ex.  5.     Find  the  day  on  which  the  balance  of  William  Hay's  account  (page  116)  will 
fall  due.  Ans.     May  16. 

0  209 


Ex.4. 

Our  ace 

1867. 

Jan.     1. 

//     27. 

Feb.  20. 

Mar.  12. 

Apr.    1. 

1867. 

Jan.  16. 

Feb.  10. 

Mar.    4. 

Apr.    1. 

DUFF'S  BOOK-KEEPING. 


Ex 

6.     Our  ^account  with  George  Draper  stands  as  follows,  viz. : 

July     1* 

Sold  him  merchandise,  at  4  mos. 

. 

$1600 

u      10. 

Paid  his  order  in  cash 

,         , 

80 

//      30. 

Merchandise  at  60  days 

, 

600 

Aug.    2. 

//             //     3  mos.           .... 

, 

850 

ij     19. 

Paid  his  order  in  cash 

, 

100 

Sept.  30. 

Merchandise  at  30  days           .... 

. 

300 

Oct.     1. 

//            //  60     '/          .         .         .         . 

.         , 

450 

July  30. 

Credit  for  his  note  at    4  mos. 

.  $1680 

Aug.  31. 

//               //              90  days      .... 

1450 

Oct.      1. 

//               //              30     //     .         .         .         . 

.      400 

u      30. 

//            cash  in  full 

450 

Required  the  interest  due  to  us  or  by  us  on  the  above  account  by  equation. 

Ans.     Dr.  equation,  Oct.  26.     Cr.  Nov.  29.     Interest  due  us,  Oct.  30,  $20.33. 


COMPUTING   FEEIGHT. 

Marine  freights  are  computed  by  the  ton  of  2240  lbs  for  all  articles  occupying  less  than 
forty  cubic  feet  to  the  ton. 

Rule. — Multiply  the  given  number  of  tons  by  the  rate ;  the  product  is  the  freight. 

Ex.  1.     Required  the  freight  of  131  tons  15  cwt.  of  Iron,  at  $2.50  per  ton. 

Ans.     $329.38. 
Ex.  2.     Required  the  freight  of  71  tons  5  cwt.  of  Copper,  at  $2.40  per  ton. 

Ans.    $171. 

In  the  Western  River  Navigation  freight  is  computed  by  the  net  100  lbs. 

Rule. — Multiply  the  given  number  of  pounds  by  the  rate,  and  divide  the  product  by 
100  ;  the  quotient  is  the  freight. 

Ex.  3.     Required  the  freight  of  47491  lbs,  at  15  cents  per  100  lbs. 

Ans.     $71.24,  nearly. 
Ex.  4.     Required  the  freight  of  61221  lbs,  at  37^  cents  per  100  lbs. 

Ans.     $229.58,  nearly. 
Ex.  5.     Required  the  freight  of  31121  lbs,  at  18f  cents  per  100  lbs. 

Ans.     $58.35+. 
Ex.  6.     Required  the  freight  of  40411  lbs,  at  12J  cents  per  100  lbs. 

Ans.     $50.51-1-. 

The  same  Rule  applies  in  computing  the  price  of  Scantling,  Boards,  &c. 

Ex.  7.     Required  the  amount  of  1721  feet  of  Scantling,  at  $1.37^  per  100  feet. 

Ans.     $23.66-t- 
Ex.  8.     Required  the  amount  of  118372  feet  of  Boards,  at  $11.25  per  M. ' 

Ans.     $1331.69. 
Ex.  9.     Required  the  amount  of  70112  feet  of  Flooring,  at  $21  per  M. 

Ans.     $1472.35-f-. 
Ex.  10.     Required  the  amount  of  1129  feet  of  Oak  Scantling,  at  $3.12^  per  C. 

Ans.     $35.28-f-. 
210 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 


GENEEAL  AVEEAGE. 

When  damage  or  loss  is  incurred  by  any  part  of  the  vessel  or  cargo,  for  the  benefit  of  all 
concerned,  all  who  profited  by  the  safety  of  the  vessel  or  cargo  must  contribute  to  the  relief 
of  those  whose  property  was  thus  sacrificed.     This  contribution  is  called  General  Average. 

Such  sacrifices  cannot  be  made  without  consultation  of  the  officers  and  crew,  and  must  be 
absolutely  necessary  for  the  safety  of  the  vessel,  otherwise  General  Average  will  not  take 
place. 

Particular  Average  means  a  partial  loss  of  the  ship  or  cargo,  by  the  dangers  of  the  sea, 
fire,  or  other  unavoidable  accident.  This  loss  must  be  borne  by  the  owners  of  the  property^ 
or  their  insurers. 

The  vessel  and  goods  injured,  saved  or  lost,  are  valued  at  what  they  would  have  brought 
in  cash  at  the  port  of  destination. 

It  is  customary,  in  calculations  of  General  Average,  to  allow  only  two-thirds  of  the  cost  of 
replacing  vessels'  masts  or  furniture,  the  new  articles  being  worth  one-third  more  than  the  old. 

The  rule  for  finding  the  General  Average  is  similar  to  that  of  Fellowship. 

Rule. — As  the  sum  of  the  values  of  the  contributory  articles  is  to  the  total  loss,  so  is  100 
to  the  per  centage  loss. 

Ex.  1.  Suppose  the  Ship  Hudson,  on  her  passage  from  Liverpool  to  New  York,  to  have 
sustained  the  following  damages,  viz. : 


Cost  of  replacing  masts,  rigging,  and  cables,  cut  away 

.     $3000 

Less  i,  extra  value  for  being  new         .... 

1000  $2000 

Cost  of  one  anchor,  which  was  lost 

, 

800 

15  pipes  of  wine,  thrown  overboard 

3000 

Towing  into  harbor 

. 

200 

General  average  loss          .... 

$6000 

Contributory  interests,  viz. : 

Ship  Hudson,  valued  at $16000 

Cargo 42000 

Freight $4000 

Less  portage  bill         ....           2000         2000 

$60000 

As  60000  ::  6000  :  100  ::  10  per  cent. 

So  that  the  ship's  owners  must  contribute 

. 

$1600 

Owners  or  insurers  of  the  cargo 

4200 

Owners  or  insurers  of  the  freight          .         .     -    . 

• 

200 

$6000 

Ex.  2.  The  ship  Roscoe,on  her  voyage  from  New  Orleans  to  New  York,  was  thrown  upon 
her  beam  ends  and  obliged  to  cut  away  her  masts,  when  she  righted,  but  sprung  a  leak,  in 
consequence  of  which  the  following  property  was  thrown  overboard  to  lighten  the  vessel, 
which  was  ultimately  towed  into  New  York : 

20  hhds.  Sugar,  belonging  to  R.  Dyer $1600 

30     //            //            //             W.  Kane 1800 

Damage  done  to  G.  Halis'  goods 1600 

Freight  of  goods  thrown  overboard   .......  120 

Cost  of  new  cables,  masts,  sails,  and  rigging  .         .         .  $3600 

Less  i,  for  newness 1200  2400 

»        Towing  the  ship  into  port      .......  80 

$7600 
211 


DUFF'S  BOOK-KEEPING. 

Contributory  interests,  viz. : 

R.  Dyer's  goods,  thrown  overboard $1600 

W.  Kane's  n  n  1800 

Value  of  W.  Hay's  goods,  less  freight  and  charges  .         .       4200 


Gr.  Page's       //  It  n 

R.  Manly's    //  //  n 

Gr.  Halis'       //  "  If 

the  ship $20000 

Deduct  for  damages  .         .         .  3600 


6950 
12650 
14800 


Value  of  the  freight      .         .         .  ,         .         .       $6800 

Less  seamen's  wagres  .         .         .  3400 


*e^ 


16400 

3400 

$60800 

Required  the  per  centage  that  each  party  must  lose  of  his  interest  in  the  ship,  cargo,  and 
freight. . 

Ans.     12  J  per  cent. 

We  have  above  given  the  rule  for  General  Average,  with  illustrations  to  explain  its  applica- 
tion, which  any  good  arithmetician  will  readily  understand.  But  it  is  to  be  observed,  that 
to  understand  in  all  cases  what  will  constitute  a  Greneral  Average  loss,  and  what  interests 
are  to  contribute  to  it,  requires  an  intimate  knowledge  of  the  Law  of  Insurance.  For 
instance,  it  has  been  decided  that  the  damage  sustained  by  a  merchant  vessel  and  cargo,  in 
fighting  and  beating  off  a  privateer,  is  not  a  subject  for  General  Average.  Also,  the  removal 
of  a  quantity  of  perishable  fruit  while  the  vessel  was  in  a  port  of  refuge  for  the  purpose  of 
repairs,  which  removal  increased  an  incipient  decay,  and  caused  an  entire  loss  of  the  fruit ; 
this  was  also  decided  to  be  no  matter  for  General  Average.  In  fact,  it  is  said  by  an  eminent 
writer  upon  law  to  be  "  the  most  intricate  and  perplexing  in  the  whole  Law  of  Insurance." 
The  subject  will  be  found  judiciously  treated  in  the  American  editions  of  "  Smith's  Mercan- 
tile Law,"  and  "  Abbott  upon  Shipping." 


ON  OPENING  BOOKS  BY  DOUBLE  ENTEY. 

Ex.  1.  I  open  my  books  with  cash  in  hand,  $100.  Deposit  in  the  City  Bank,  $4900.  K. 
Gain's  note  for  $4000 ;  interest  due  on  the  same,  $200.  I  own  house  and  lot  on  Water  Street, 
worth  $30000,  upon  which  I  owe  .$10000  on  bond,  with  $500  interest  due  on  the  same.  H. 
Stubbs  owes  me  on  account,  $700.  I  owe  R.  Ryan  on  account,  $1500.  Required  the  Journal 
entry  for  opening  my  books. 

Ex.  2.  Commenced  business  with  cash  in  hand,  $250.  Deposit  in  Exchange  Bank, 
$7000.  Eighty  shares  Hudson  River  Rail  Road  Stock,  $100  per  share,  with  25  per  cent, 
paid  upon  it.  Forty  shares  City  Bank  Stock,  $50  per  share,  in  full.  One  hundred  shares 
Central  Rail  Road  Stock,  $100  per  share,  with  60  per  cent,  paid  upon  it.  Required  the 
opening  Journal  entry. 

Ex.  3.  Jacob  Ring  pays  in  cash,  $2100.  Aaron  Budd,  $1990.  They  are  to  do  business 
under  the  firm  of  Ring  &  Budd.     Required  the  Journal  entry  for  opening  their  books. 

Ex.  4.  J.  Park  and  P.  Buchan,  partners  in  business.  Park  pays  in  cash,  $1000 ;  merchan- 
dise, $1100.  Buchan  pays  in  cash,  $1000;  merchandise,  $890 ;  notes  due  him,  $100. 
Required  the  Journal  entiy  for  opening  their  books. 

212 


0:N    commercial  calculations.— part  III. 

Kx.  5.     Rowen  &  Cox  commence  business  with  the  following  capital,  viz. :    • 

J.  Rowen  pays  in  cash,  $2000 ;  merchandise,  $500 ;  notes  due  him,  $400.     Wm 
Tell  owes  him,  on  account,  $100.     Rowen  owes  debts  which  the  firm  assumes, 
viz. :  On  his  notes,  $300 ;  to  Wm.  Yates,  on  account,  $400. 
B.  Cox  pays  in  cash,  $1800 ;  merchandise,  $800 ;  notes  due  him,  $600.     J. 
Pond  owes  him,  on  account,  $300.     Cox  owes  debts  which  the  firm  assumes, 
viz. :  On  his  notes,  $700 ;  to  Geo,  Oates,  on  account,  $500. 
Required  the  Journal  entry  for  opening  their  books. 
Ex   6.     Dean  &  Brady  commence  business  as  follows  : 

R.  Dean  pays  in  cash,  $1400;  notes  due  him,  $1200;  interest  due  on  these 

notes,  $130;  merchandise,  $600.     Sands  &  Turner  owe  him,  on  account, 

$200.     The  firm  assumes  the  following  debts  owing  by  Dean,  viz. :  On  his 

notes,  $500;  to  Fulton  &  Gowan,  $200. 

D.  Brady  pays  in  cash,  $1200 ;  notes  due  him,  $1500 ;  interest  due  on  these 

notes,  $160.  The  firm  assumes  notes  owing  by  Brady,  $980. 
Required  the  Journal  entry  for  opening  their  books. 
Ex.  7.  D.  Mills  is  the  owner  of  a  Factory,  which,  together  with  other  effects  belonging 
to  his  business,  constitutes  a  net  capital  of  $40000,  which  is  at  the  credit  of  his  Stock  Ac- 
count in  a  regular  set  of  double  entry  books.  Without  closing  his  books  or  exhibiting  any 
inventory  of  his  property,  he  agrees  to  admit  J.  Roy  and  B.  Gates  as  equal  partners,  on  their 
paying  into  the  firm  as  capital  $20000  each,  and  paying  him  a  bonus  of  $10000  each,  also, 
in  cash ;  which  was  to  constitute  all  three  partners  equal  in  property,  and  equal  in  gain  or 
loss.  Required  the  Journal  entry  for  introducing  the  new  partners  and  their  capital  into 
the  old  books. 

Ex.  8.  Suppose  Mills'  capital  to  be  $60000,  at  the  credit  of  his  Stock  Account.  Roy 
and  Gates  agree  to  come  in  as  i  partners  in  the  business  by  paying  in,  as  capital,  $30000 
each,  in  cash,  and  also  to  pay  Mills  a  bonus  of  $5000  each,  in  cash.  Required  the  Journal 
entry  to  introduce  the  new  partners'  names  into  the  books.  Mills  to  be  J,  and  Roy  and  Gates 
each  i  in  property  and  I  gain  or  loss. 

When  a  firm  establishes  branches  of  its  business  at  distant  points,  these  branches  are 
debited  and  credited  in  all  respects  like  strangers,  and  the  branches  do  the  same  with  each 
other  and  with  the  head  of  the  firm. 


EXEECISES  IN  CLOSING  THE  LEDGER. 


Ex.  1.     Stock                  is  Dr. 

$1200 

Cr. 

$2800 

Merchandise         // 

3470 

// 

2400,  on  hand,  $1250 

Profit  &  Loss       // 

850 

If 

1650 

Bills  Receivable  // 

2700 

If 

1800 

Bills  Payable        // 

240 

u 

1200 

W.  Horn              // 

180 

If 

270   ' 

D.  Camp              // 

1900 

If 

420 

Write  out  a  Ledger  specification  of  the  above, 

open  a  Balance  Account,  and  close  the  whole 

of  the  accounts. 

Ex.  2.    Stock                 is  Dr. 

$1800 

Cr. 

$2200 

Merchandise         if 

7500 

// 

4600,  on  hand,  $3500 

Profit  &  Loss        // 

2150 

// 

250 

Bills  Receivable  ff 

980 

If 

880 

Bills  Payable       // 

200 

It 

6600 

R.  Irons                // 

750 

If 

150 

John  Doe             // 

1600 

If 

300 

Write  out  the  Ledger  statement,  open  the  Balance  Account,  and  close  the  books. 

J13 

O?^   THE     ^ 


DUFF'S   BOOK-KEEPING. 


.3.     Stock 

is  Dr. 

$750 

Cr. 

$4800 

Profit  &  Loss 

II 

1220 

II 

1880 

Interest 

II 

150 

II 

450 

Expense 

II 

1410 

II 

110 

Storage 

II 

750 

II 

1250 

Commission 

II 

It 

600 

Balance 

II 

9890 

II 

5080 

Cr. 

$3800 

// 

3600 

// 

4900 

// 

6200 

Write  out  the  Ledger  statement  and  make  the  final  closing  entries. 

Ex.  4.     John  Doe  and  Richard  Boe,  partners  in  business,  are  balancing  their  books, 
which  they  find  standing  at  the  final  closing  as  follows : 

J.  Doe's  account  is  Dr.       $420 

B.  Boe's  //  60 

Profit  &  Loss     //  700 

Balance  //  17320 

The  partners  are  equal  in  gain  or  loss.     Bequired  the  final  closing  of  the  Ledger. 

Ex.  5.     S.  Boon  and  B.  Simmons  find  their  books  standing  as  follows : 
S.  Boon's  acct.  is  Dr.  $1230  Cr.  $2700 

B.  Simmons'     ii  1050  //      1300 

Profit  &  Loss    //  6600  //        900 

Balance  //  9220  //    13200 

S.  Boon  is  I  and  B.  Simmons  ^  gain  or  loss.     Bequired  the  final  closing  of  the  Ledger. 


PAETNERSHIP  SETTLEMENTS  BY  SINGLE  ENTEY: 

In  single  entry  Book-keeping,  where  no  Profit  &  Loss  Account  is  kept,  the  gain  or  loss  is 
determined  as  directed  on  page  18. 

Ex.  1.  A.  paid  into  firm  $600,  and  drew  out  $180.  B.  paid  in  $300,  and  drew  out  $120. 
The  undivided  efi'ects  amount  to  $450.  A.  is  |  and  B.  i  gain  or  loss.  Bequired  the  divi- 
sion of  the  $450  between  them. 

Ex.  2.     C.  paid  in  $2400,  drew  out  $750. 

D.  //       2100,         //        1100. 

E.  II      2000,         //  120. 

Each  partner's  share  in  the  gain  or  loss  is  equal.  At  the  date  of  dissolution  they  are  owing 
debts,  $2750,  and  have  cash,  notes,  merchandise,  and  other  efi'ects,  $8660.  Bequired  the 
balance  due  each  partner.  Ans.     Due  C.  $2110;  D.  $1460;  E.  $2340. 

Ex.  3.     A.  paid  in  $700,  drew  out  $150. 

B.  II        800,         II  290. 

C.  II        500,         //  400. 

At  the  time  of  their  dissolution  their  cash,  merchandise,  and  other  efi'ects  amount  to 
$1848,  and  they  owe  $950.  The  partners  share  equally  in  the  gain  or  loss.  Bequired  the 
balance  due  each.  '  Ans.     Due  A.  $462.67;  B.  $422.67;  C.  $12.66. 

Ex.  4.     F.  pays  in  $3200,  draws  out  $650. 
O.         //       1624,         //  500. 

H.        //       1500,         II         1450. 
F.  is  to  be  ^  gain  or  loss,  and  G-.  and  H.  each  \.     G-.  and  H.  retire  from  the  businesis. 
The  cash  and  merchandise  on  hand  is  $3800.     Outstanding  debts  due  the  firm  $2850,  upon 

214 


ON   COMMERCIAL  CALCULATIONS.— PART   III. 

frliich  it  is  agreed  to  allow  10  per  cent,  discount  for  bad  debts.  The  firm  owes, 
ind  book  debts,  $3400.  Required  the  sums  F.  will  have  to  pay  G.  and  H.  on  retiring — F. 
to  become  the  owner  of  all  the  effects  of  the  firm  and  assuming  all  their  liabilities,  as  above 
stated.  Ans.  F.  pays  G.  $934.25,  and  H.  pays  F.  8139.75. 

Ex.  5.  A.  was  f  and  B.  i  gain  or  loss,  and  at  the  time  of  dissolution  B.  agrees  to  take 
the  whole  stock  of  cash,  merchandise,  and  other  effects  of  the  firm,  for  83010.79 — A.  re- 
tiring from  the  business.  By  their  accounts  it  appeared  that  A.  had  drawn  out  $592.82, 
and  paid  in  81146.78;  B.  had  drawn  out  $103.27,  and  paid  in  $504.92.  No  interest  was 
to  be  charged  on  either  side.     Ptequired  the  sum  B.  must  pay  A.  on  retiring. 

Ans.  81924.08. 


rOE  EEOTIFYING  DEEANGED  DOUBLE  ENTEY  BOOKS. 

Rule. — Close  all  the  impersonal  accounts  into  Profit  &  Loss;  then  place  the  amount  of 
each  side  of  the  Profit  &  Loss  in  the  list  of  Effects  and  Liabilities,  carrying  back  to  the 
Profit  &  Loss  the  difference  between  the  Effects  and  Liabilities.  Close  the  Profit  &  Loss 
into  the  partners'  accounts  in  all  respects  as  in  double  entry.  This  transforms  the  single 
entry  Ledger  into  a  double  entry  one.     (See  pp.  7,  18,  and  19.) 

Ex.  6.  N.  paid  in  $2460,  drew  out  $975. 
0.       //         2660,  ff         420. 

P.       //         2800,         ;/       1100. 
At  the  time  of  dissolution  they  owe  $4500,  and  have  cash,  merchandise,  and  other  effects, 
$8840.     They  also  have  an  expense  account  open  which  is  debited  for  $1260.     Required 
the  balance  due  each  partner,  exhibiting  the  expense  account  closed,  each  partner  sharing 
equally  in  the  gain  or  loss. 

Ans.  Due  N.  $1123.34.     Due  0.  $1878.33.     Due  P.  $1338.88. 

Ex.  7.  Q.  paid  in  $2560,  drew  out  $1075. 
R.       //        2770,         //  520. 

S.        //        2890,         //  200. 

At  the  time  of  settlement  the  firm  owes  $4450,  and  have  cash,  merchandise,  and  other 
effects,  $8780.     Their  expense  account  is  debited  for  $1480.     Profit  &  Loss  is  Dr.  $640, 
and  Cr.  $1400.    Commission  account  is  credited  for  $1850.    The  partners  are  equal  in  gain 
or  loss.     Required  the  balance  due  each,  and  exhibit  the  impersonal  accounts  all  closed. 
Ans.  Due  Q.  $786.67.     Due  R.  $1551.67.     Due  S.  $1991.66. 

If  there  be  property  accounts  open,  close  them  By  Balance  for  the  value  on  hand,  and 
bring  the  balance  down,  and  carry  the  gain  or  loss  to  the  Profit  &  Loss  account.  Then 
proceed  as  directed  in  the  above  Rule. 

Ex.  8.  N.,  0.,  and  P.,  partners  in  business,  paid  into  the  concern  as  follows: 

N.  paid  in  $2464,  and  drew  out  $985. 
O.       ff        2665,  //  424. 

P.       ff        2880,  //  1110. 

At  the  time  of  dissolution  they  owe  $4595.  They  have  merchandise  on  hand  valued  Jit 
$4400;  cash,  81840;  notes  and  book  debts  due  them,  82218.  Their  expense  account  is 
debited  for  $1286.  Their  merchandise  account  is  debited  for  $40050,  and  credited  for 
$39500.  Their  Profit  &  Loss  account  is  debited  for  $1665,  and  credited  for  $1580.  Each 
partner  shares  equally  in  the  gain  or  loss.  Required  the  balance  due  each  at  the  time  of 
dissolution.  Ans.  Balance  due  N.  $936.67.     Due  0.  $1698.67.     Due  P.  $1227.66. 

215 


DUFFS  BOOK-KEEPING. 


Ex.  9.  R.  and  S.,  partners  in  business,  desire  to  make  a  dividend  of  their  ^ain  or  loss 
They  find  their  books  standing  as  follows : 


R.'s  account  is 

Dr. 

$6600 

Cr. 

$15000 

S.'s    •    i> 

II 

950 

// 

12000 

Merchandise 

II 

24000 

II 

12500  on  hand,  $11000 

Cash 

II 

13000 

II 

9500 

Bills  Receivable 

II 

16500 

II 

7500 

Bills  Payable 

II 

4800 

II 

8300 

Profit  &  Loss 

II 

700 

II 

2700 

Commission 

II 

2200 

Interest 

II 

880 

II 

1400 

R.  Roy 

II 

2200 

C.  Page 

II 

800 

Required  the  Ledger  Specification  of  the  book,  exhibiting  the  balance  sh)et  and  each 
partner's  capital. 

Ans.  R.'s  capital,  $9375.     S.'s  capital,  $12025.     Each  partner's  giin,  $975. 

When  the  capital  is  paid  in  at  difi"erent  times,  and  it  is  agreed  that  profit  or  loss  is  to  be 
divided  in  proportion  to  the  time  it  is  invested,  the  gain  or  loss  is  found  by  the  preceding 
rules,  and  divided  by  the  following 

Rule. — Multiply  each  partner's  capital  by  the  time  it  was  employed ;  then  add  all  the 
products  together  and  say,  as  the  sum  of  these  products  is  to  each  partner's  product,  so  is 
the  whole  gain  to  each  partner's  share  of  it. 

Ex.  10.  K.,  L.,  and  M.,  partners  in  business,  commencing  1st  January,  1866. 

'.  $1200 

900 

.   1100 

800 

.   1100 

1400 

200 

1800 

At  the  time  of  dissolution,  31st  December,  1866,  the  firm  has  cash  and  merchandise  in 
hand,  $5500;  notes  and  book  debts,  $4500.  They  owe  $3200.  The  gain  or  loss  is  to  be 
divided  in  proportion  to  the  amount  of  capital  paid  in  by  each  partner,  and  for  the  time  it 
was  in  the  business.     Required  the  balance  due  each  partner. 

Ans.  K.'s  gain,  $112.14.     Balance  due  him,  $2512.14. 
L.'s     //         98.48.  //  //  2398.48. 

M.'s    //  89.38.  //  //  1889.38. 

Ex.  11.  N.,  0.,  and  P.  partners  in  business,  commencing  January  1,  1867, 


Jan. 
March 

K.  paid  in 
II         II 

June 

II         II 

Aug. 

II    drew  out 

Jan. 
May 
Oct. 

L.  paid  in 
//         // 
//    drew  out    . 

Jan. 

M.  paid  in 

//    drew  out  nothing 

Jan. 
Marc! 

N. 
II 

pays  in 
II 

July 

II 

draws  out 

Sept. 
Jan. 

II 
0. 

pays  in 

May 
June 

draws  out 

Aug. 
Jan. 

P. 

pays  in 
11 

Oct. 

// 

II 

800 
200 
600 
700 
400 
200 
1200 
1000 
600 


216 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

At  the  date  of  settlement,  December  31, 1867,  the  firm  has  cash  and  other  effects  in  hand, 
S7500,  and  are  owing  debts  to  the  amount  of  $3400.  Required  the  division  of  the  gain  or 
loss,  in  proportion  to  the  amount  and  time  each  partner's  capital  was  invested,  and  the  net 
balance  due  each  partner. 

Ans.     N.'s  net  loss,  $494.83.     Balance  due  him,  $1305.17. 
O.'s       //  488.79.  H  «  1611.21. 

P.'s       V  416.38.  //  u  1183.62. 


Ex.12.     X. 


and  Y.  part 

ners  in  business,  commencing  1st  January,  1867. 

Jan.      1, 

X.  paid  in $9000 

May      1, 

//          //.....           2400 

June     1, 

//    drew  out 1800 

Sep.      1, 

'/          // 2000 

Oct.       1, 

//    paid  in 800 

Jan.      1, 

Y         // 3000 

March  1, 

//    drew  out 1600 

May      1, 

//          11 1200 

June     1, 

//    paid  in 1500 

Oct.       1, 

//          //....*.          8000 

At  the  time  of  settlement,  on  the  31st  of  December,  1867,  their  merchandise  account  was 
Dr.  $32000 ;  Cr.  $27000.  Balance  of  merchandise  on  hand,  per  inventory,  $10500.  Cash 
on  hand,  $4900.  Bills  Receivable,  $12400.  R.  Draper  owes  on  account,  $2450.  They  owe 
on  their  notes,  $1890.  They  owe  Gr.  Roe  on  account,  $840.  Their  Profit  &  Loss  account  is 
Dr.  $866 ;  Cr.  $1520.  Expense  account  is  Dr.  $2420.  Commission  account  is  Cr.  $2760. 
Interest  is  Dr.  $480 ;  Cr.  $950.  The  gain  or  loss  is  to  be  divided  in  proportion  to  each 
partner's  capital,  and  in  proportion  to  the  time  it  was  invested.  Required  each  partner's 
share  of  the  gain  or  loss,  the  net  balance  due  each,  and  a  Ledger  specification  exhibiting  the 
closing  of  all  the  accounts  and  the  balance  sheet. 

Ans.     X.'s  share  net  gain,  $6671.73.     Net  balance  due  him,  $15071.73. 
Y.'s      //         //  2748.27.  //  //  12448.27. 


Ex.  13.  J.  Boyd  and  W.  Page,  partners  in  business,  dividing  the  gain  or  loss  equally. 
Page  retires  from  the  firm.  Their  books  are  kept  by  single  entry;  and  the  partner's  accounts 
stood  as  follows  : — J.  Boyd  is  Dr.  for  sums  withdrawn,  $6200 )  Cr.  for  sums  paid  in,  $8100. 
W.  Page  is  Dr.  for  sums  withdrawn,  $5100,  and  Cr.  for  sums  paid  in,  $7800.  Their  effects 
consist  of 

Cash  which  Page  takes  to  his  account  ......     $4400. 

Bills  Receivable  which  he  also  takes  to  acct.     .    *     .         .         .         .  3700. 

Mdse.  on  hand  which  Boyd  takes  to  his  acct 5600. 

Book  debts  which  he  also  takes  to  acct.  6300. 

They  owe  on  notes,  which  Boyd  assumes  .....       2200. 

They  owe  Book  debts,  which  he  assumes  .....  1100. 

Required  which  partner  is  indebted  to  the  other,  and  what,amount  ? 

Ex.  14.  A.  became  embarrassed,  and  failed  in  business.  His  effects  were  sold  off  at 
auction,  and  the  net  proceeds,  $7770,  paid  over  by  the  auctioneer  to  the  assignee.  A.  was 
indebted  as  follows,  viz  : 

To  B.  on  notes  and  book  account         .         .     $4800 
//    C.  on  account  ....  5600 

//   D.  // 3600 

Each  creditor  is  to  receive  in  proportion  to  the  amount  of  his  claim.  The  assignee's  com- 
mission is  5  per  cent,  on  the  aaount  paid  over  to  the  creditors.  Required  the  amount  to  be 
received  by  each.  Ans.     B.  receives  $2537.14. 

C.  fi         2960. 

D.  //         1902.86. 
217 


DUFF'S  BOOK-KEEPING. 


ON  THE  SETTLEMENT  OF  ACCOUNTS. 


Referring  to  our  directions  for  making  out  accounts,  (page  114,)  we  have  only  to  observe 
that,  under  the  date  of  the  semi-annual  settlement,  spare  space  is  usually  left  in  the  Day-Book 
to  insert  entries  of  all  omissions  that  are  discovered  upon  exchanging  accounts  current. 
These  omissions  are  entered  and  posted  up  under  date  of  the  last  day  of  the  last  month's 
business  embraced  in  the  account  for  the  semi-annual  settlement ;  but  the  payment  must 
appear  under  the  date  upon  which  it  takes  place.  To  enter  or  post  it  under  a  back  date 
would  derange  the  cash  account. 

In  those  cases  in  which  we  expect  to  receive  the  balance  of  the  account  rendered  before 
any  new  transactions  -take  place,  it  is  unnecessary  to  balance  the  account  on  the  Ledger  until 
we  can  post  up  the  payment  and  close  the  account.  But  if  new  transactions  take  place  be- 
tween the  parties  before  the  payment  of  the  balance  of  the  old  account  is  made,  it  will 
generally  be  found  more  convenient  to  balance  the  old  account  in  the  Ledger,  and  bring 
down  the  balance  into  new  account,  in  which  an  entry  of  the  payment  will  appear  when 
made.  Those  who  prefer  excluding  this  old  balance  and  its  payment  from  the  next  account 
current,  can  star  out  the  entries  on  the  Ledger,  as  seen  in  the  following  specification,  and 
leave  the  amounts  out  of  the  new  account  current.  Loans  of  money,  and  other  transient 
matters,  may  be  left  out  of  the  account  current  by  the  same  means.  (See  Pryor's  account, 
page  167.) 


Dr. 


E.  OAKVER. 


Or. 


1867. 

1867. 

V 

Jan. 

17 

To  Merchandise 

7 

416 

40 

Feb. 

4 

By  Cash 

15 

416 

40 

Feb. 

1 

w           w 

14 

4200 

20 

28 

//    Bills  Receivable 

19 

4000 

Mar. 

10 

U                It 

20 

780 

80 

Mar. 

8 

II   Merchandise 

20 

918 

80. 

June 

28 
30 

II   Sundries 
To  Bal.  '^  acct.  ren'd 

27 

1160 

June 
July 

30 
1 

Bal.  to  new  acct. 
By  Merchandise 

! 

1222 

20 

6557 

40 

6557 

40 

June 

<1222 

20 

730 

July 

7 

//    Merchandise 

30 

480 

17 

//    Cash  on  old  acct. 

34^ 

<    800 

Aug. 

4 

//   Order  to  F.  Oaks 

39 

79 

74 

20 

II    My    order    per") 

33 

140 

Sep. 

30 

//         //  to  R.  Rankin 

46 

130 

40 

Ryan  &  Co.     j 

Oct. 

21 

//   Merchandise 

56 

494 

70 

Aug. 

1 

//    Cash  in  full  for  1 

38 

'    422 

20 

Deo. 

7 

//   Order  to  Winters 

69 

73 

30 

old  acct.           1 

30 

//   Merchandise 

84 

360 

60 

In  business  a  note  is  generally  taken  for  such  a  balance  as  the  above,  and  the  account  is 
immediately  closed. 

Between  houses  keeping  interest  accounts  with  each  other,  unless  the  balance  of  the  ac- 
count is  paid,  with  a  note  or  money,  on  presentment,  it  and  the  other  payments  will  appear 
in  the  next  account. 

On  page  146  will  be  found  a  practical  exemplification  of  the  Check  Book,  kept  in  such  a 
manner  as  to  check  both  sides  of  the  Bank  account  in  the  Ledger.  We  shall  now  add  some 
additional  directions  for  settling  with  your  banker. 

When  you  get  your  Pass  Book  balanced,  if  it  contains  any  charges  for  discounts,  commis- 
sions, or  any  entries  not  in  your  books,  enter  them  both  on  your  Check  Book  and  Bay-Book. 
If  all  your  checks  have  not  been  returned,  enter  the  numbers  and  amounts,  in  red  ink,  on  tho 

218 


ON  COMMERCIAL  CALCULATIONS.— PART  III. 

Dr.  side  of  your  Check  Book  and  Ledger,  and  if  all  your  work  is  right,  the  balance  in  de- 
posit will  close  the  account.  Close  the  account,  and  bring  down  the  balance  on  the  Check 
Book  and  Ledger  in  the  usual  manner,  and  bring  down  the  outstanding  checks  in  the  same 
manner  on  the  Cr.  side.  To  make  tlje  matter  clearly  understood,  we  subjoin  a  specification 
of  it  on  a  Check  Book : 


DATE. 

AMOUNTS  DEPOSITED. 

DATE. 

NAME. 

No. 

AMOUNT. 

CHECKS. 

1867. 

1867. 

June 

30 

Bro,  forw'd 

4248 

10 

June 

30 

Checks  out, 

1100 

40 

July* 

5 

Deposited 

800 

July 

2 

R.  Hill, 

174 

900 

ri 

// 

1300 

5 

W.  Wood, 

175 

600 

August 

1 

// 

400 

Aug. 

2 

R.  Cox, 

176 

1100 

60 

19 

// 

1140 

Sept. 

9 

B.  Ray, 

177 

970 

Sept. 

1 

// 

660 

90 

13 

W.  Boon, 

178 

1430 

4 

// 

340 

40 

Sept. 

30 

Balance, 

5095 

80 

7 

// 

521 

24 

y^ 

24 

// 

216 

16 

y^ 

Out,  175 

§600. 

y^ 

177 

30 

970. 

1570 

80 

Sept. . 

30 

X 

11196 

11196 

80 

Sept. 

Balance 

5095 

80 

Checks  out, 

1570 

You  will  understand  that  the  above  $5095.80  represents  the  balance  made  by  the  banket 
on  your  Pass  Book ;  but  he  made  that  balance  before  two  of  your  checks  (Nos.  175  and  177) 
were  presented ;  consequently  your  books  will  not  show  the  same  balance  until  the  amount 
of  these  checks  is  counterentered.  This  should  be  done  in  red  in  the  old,  and  black  in  the 
new  account. 

I  feel  confident  that  no  business  man  will  try  this  form  of  Check  Book,  and  not  prefer  it 
to  the  old  practice  of  entering  Checks  and  Deposits  all  in  one  column. 

Young  accountants  will  find  the  advantage  of  having  their  Pass  Books  frequently  balanced. 
In  a  business  of  any  magnitude  it  should  be  done  monthly — never  at  longer  periods  than 
three  months. 


EXEEOISES    IN    INVOICES. 

See  Forms,  page  59. 

Ex.  1.  Sold  Draper,  Son  &  Co.  July  6,  1867 :  1  piece  superfine  Black  Broadcloth,  No. 
427,  19^  yds.  @  83.62J.  1  end,  10^  yds.  Green  do.  No.  401,  @  $3.62*.  1  end  Blue  do. 
No.  644,  10  yds.  @  $3.62J.  2  pieces  Black  do.  Nos.  4202  and  4203.  18  and  18^  yds.  @ 
83.31i.  4  ends  Vesting,  6^,  8^,  9^,  and  7*  yds.  @  $2.50.  2  pieces  do.  14  and  16  yds.  @  $3. 
Kequired  the  invoice,  exhibiting  the  correct  amount.  Ans.     6434.66. 

Ex.  2.  Sold  King,  Wood  &  Co.,  July  10, 1867, 12  doz.  Black  Silk  Hose,  @  $10.  9  doz. 
Ladies'  best  Black  Kid  Gloves,  @  $7.62^.  4  doz.  Men's  do.  @  $9.87^.  2  doz.  do.  out  sizes, 
@  $11.50.  6  doz.  Men's  fancy  colored  do.  @  $9.75.  8  doz.  Children's  do.  @  $4.62*. 
6  doz.  do.  Thread,  @  $2.  12  doz.  Men's  fancy  Silk  Half  Hose,  @  $3.75.  6  doz.  do.  Black 
Ribbed,  @  $4.    Required  the  invoice,  exhibiting  the  correct  amount.        Ans.    $427.63. 

219 


DUFF'S  BOOK-KEEPING. 

Ex.  3.  Sold  George  Gains  &  Co.  July  30,  1867  :  10  doz.  Lyeli's  Shovels,  @  87.75.  15 
doz.  Bowman's  Spades.  @  $10.75.  5  doz.  do.  Cast  steel,  @  $12.50.  5  boxes  Derby  Scythe 
Stones,  @  $3.50.  20  doz.  Grass  Scythes,  @  $11.50.  12  doz.  Corn  do.  @  $13.50.  3  Mouse- 
hole  Anvils,  120,  230,  and  330  lbs.  @  12  cts.  f  lb.  3  Birmingham  Anvils,  100,  150,  and 
250  lbs,  @  8  cts.  ^  lb.     Bequired  the  invoice  and  correct  amount.  Ans.     $832,35. 

Ex.  4.     Sold  Bichard  Carver  &  Son,  July  31,  1867. 

At  5%  discount*— 55  Patent  Balances,  @  $10.  30  doz.  Patent  Coffee  Mills,  @  $5. 
20  doz.  Lippincott's  Axes,  at  $10.     25  doz.  do.  Hatchets,  @  $4.     30  doz.  do.  @  $3.75. 

At  10%  discount— 30  Boland's  6-feet  Mill  Saws,  @  $3.75.  25  do.  6i-feet  Cross-cut 
Saws,  @  $3.75.     4  doz.  Hand  Saws,  @  $7.50.     6  doz.  do.  @  $9.     4  doz.  do.  @  $6.50. 

The  following  are  net>— 10  gross  Gilt  Vest  Buttons,  of  each  No.  479,  @  $1 ;  566,  @  1.20 ; 
667,  @  $1.30 )  494,  @  $1.40 ;  993,  @  $1.50 ;  337,  @  $1.60.  2  doz.  Bodgers'  Penknives, 
of  each  No.  4200,  @  $7 ;  4900,  @  $8 ;  4300,  @  $9 ;  4400,  @  9.50.  12  doz.  best  balance- 
handled  Ivory  Table  Knives  and  Forks,  @  $10.50.     Bequired  the  invoice  and  amount. 

Ans.     $1614.49. 

Ex.  5.  Sold  David  Chesman  &  Co. :  4  hhds.  Sugar,  each  1146,  1104,  1107,  and  1003 
lbs  gross,  tare  10%,  @  5  cts.  16  boxes  Mould  Candles,  56  lbs  each,  @  10=}  cts.;  boxes 
25  cts.  each.  30  boxes  Bloom  Baisins,  @  $3.  40  doz.  Corn  Brooms,  @  $2.  2  chests, 
84  lbs  each,  Y.  H.  Tea,  @  68  cts.  6  half  chests  do.  240  lbs,  @  65  cts.  Bequired  the 
invoice  and  amount.  Ans.     $734.52. 

Ex.  6.  Sold  Mason  &  Sands  :  6  Detached  Lever  Silver  Watches,  @  $12.  8  do.  @  $15. 
5  do.  Gold  do.  @  $40.  5  Duplex  Lever  Gold  do.  @  $65.  6  do.  do.  @  $75.  IMoz.  Gold 
Spectacles,  @  $60  per  doz.  |  doz.  do.  @  $75  per  doz.  3  doz.  Silver  do.  @  $10.  2  doz. 
do.  @  $15.  1  doz.  Eight-day  Clocks,  $65.  I  doz.  Church  Clocks,  @  $80.  Bequired  the 
invoice.  Ans.     $1439.50 


EXAMINATION  ON 

SETTLING  CONSIGNMENTS  AND  JOINT  AOOODNTS. 

See  Questions  25  and  26,  page  41. 

Ex.  1.  William  Mount's  sales  are  completed.  Total  sales,  $3420.  Charges  posted, 
$780.  After  charges,  viz. :  Commission  and  guarantee,  5%.  Storage,  $20.  Bequired  the 
Journal  entry  to  close  the  sales  on  the  Ledger,  supposing  the  net  proceeds  to  be  carried  to 
Mount's  credit. 

Ex.  2.  G.  Glen's  sales  are  effected  to  amount  of  $14040.  Charges  posted,  $1729.  After 
charges,  viz. :  Commission  and  guarantee,  5%.  Storage,  $56.  Bequired  the  Journal  entry 
for  closing  the  sales,  supposing  we  pay  over  the  net  proceeds  at  the  same  time  in  cash. 

Ex.  3.  Effected  sales  for  David  Carman,  $4660.  Charges  posted,  $4440.  After  charges 
are,  Commission,  5  per  cent.  -,  Storage,  $36.    Bequired  the  Journal  entry  to  close  the  sales. 

Ex.  4.  Effected  sales  of  Michael  May's  goods,  $9840.  Charges  posted,  $9910.  After 
charges.  Commission  and  guarantee,  5  per  cent. ;  Storage,  $45.  Bequired  the  Journal  entry 
to  close  the  sales. 

Ex.  5.  Completed  sales  of  merchandise  on  joint  account  with  Wm.  Hay,  each  one-half. 
Our  first  cost  was  $2400.  Total  sales,  $6400.  Charges  posted,  $800.  After  charges,  Com- 
mission and  guarantee,  5  per  cent.  Storage,  $18.  Bequired  the  Journal  entry  to  close 
the  sales,  carrying  Hay's  net  proceeds  to  his  account. 

Ex.  6.  Completed  sales  of  merchandise  on  joint  account  with  Wm.  Hay,  each  one-half 
Our  half,  first  cost,  $6000.     Total  sales,  $12600.     Charges  posted,  $490.     After  charges, 

*  Short-extend  each  discount,  and  from  the  marginal  addition  subtract  the  discount,  full-extending  the  net  amounts.    Lesa 
than  five  mills  count  nothing  in  the  extensions;  five  mills  and  upward  count  another  cent. 

220 


ON   COMMERCIAL  CALCULATIONS.— PART   III. 

Commission  and  guarantee,  5  per  cent.  Storage,  $66.  Required  the  Journal  entry  for 
closing  the  sales ;  carrying  Hay's  net  proceeds  to  his  credit. 

Ex.  7.  Suppose  the  above  total  sales  to  be  $6000.  Our  half,  first  cost,  the  same,  ($6000). 
No  charges  are  made.  Required  the  Journal  entry  to  settle  the  transaction,  supposing  we 
give  Hay  our  note  at  60  days  for  his  share  of  the  net  proceeds. 

Ex.  8.  Suppose  our  half,  first  cost,  and  the  total  sales  to  be  equal,  as  in  the  last  problem 
— $6000  each — and  the  after  charges.  Storage,  $30 ;  Commission  and  guarantee,  5  per  cent. 
Required  the  Journal  entry  to  close  the  sales,  supposing  Hay's  net  proceeds  to  be  paid  him 
in  cash. 

Ex.  9.  Suppose  our  half,  first  cost,  $9000.  Total  sales,  only  $8000.  Commission  and 
guarantee,  5  per  cent.  Storage,  $28.  Required  the  Journal  entry  to  close  the  account,  sup- 
posing we  give  Hay  an  order  on  James  Carter  for  his  share  of  the  net  proceeds. 

Ex.  10.  Our  half,  first  cost,  was  ^^11500.  Charges  posted,  $500.  Total  sales,  $18000. 
After  charges,  Storage,  $84 ;  Commissi*  and  guarantee,  5  per  cent.  The  inventory  of  the 
joint  property  unsold  is  $8000.*  Required  the  Journal  entry  to  close  the  account,  sup- 
posing Hay's  ^  net  proceeds  to  be  carried  to  his  account. 

Ex.11.  Suppose  our  half,  first  cost,  $10500.  Charges  posted,  $560.  Total  sales,  $15000. 
After  charges.  Commission  and  guarantee,  5  per  cent.;  Storage,  $48.  Property  on  hand, 
$6200.  Required  the  Journal  entry  for  closing  the  account,  paying  over  Hay  his  half  net 
proceeds  in  cash. 

Ex.  12.  Our  half,  first  cost,  was  $14800.  Charges  posted,  $150.  Total  sales,  $7800 
Joint  property  on  hand,  $13200.  After  charges,  viz. :  Storage,  $64;  Commission  and  guar- 
antee, 5  per  cent.  Required  the  Journal  entry  to  close  the  account,  supposing  it  to  include 
our  note  to  Hay  for  his  half  net  proceeds. 

Ex.  13.  Our  half,  first  cost,  was  $9000.  Charges  posted,  $8800.  Commission,  5  per  cent. 
Storage,  $24.  Total  sales,  $4400.  Joint  property  unsold,  $2200.  Required  the  Journal 
entry  to  close  the  account  and  carry  Hay's  share  of  the  deficiency  to  his  account. 


EXEKOISES  IN  DISCOUNTING  BUSINESS  PAPEE. 

Ex.  1.  Received  Hall  Smith's  note  for  $1200,  dated  August  31,  1867,  at  6  months,  en- 
dorsed by  James  Betts.  Discounted  the  same  December  27.  Required  the  note,  the 
unexpired  time,  anti  discount. 

Ex.  2.  Received  J.  W.  Frost's  note  for  $900,  dated  October  28,  1867,  at  4  months, 
endorsed  by  W.  Summer.  Discounted  December  13.  Required  the  note,  unexpired  time, 
and  discount. 

Ex.  3.  Received  A.  T.  Howden's  note  for  $1800,  dated  October  31,  1867,  at  4  months, 
endorsed  by  D.  Bowers.  Discounted  November  30.  Required  the.  note,  the  unexpired 
time,  and  discount. 

Ex.  4.  Received  J.  Warden's  note  for  $1266,  dated  March  31,  1867,  at  three  months, 
*^ndorsed  by  I.  N.  Forner.     Discounted  May  31.    Required  the  unexpired  time,  and  discount. 

Ex.  5.  Received  R.  Manly's  note  for  $624,  dated  March  30, 1867,  at  3  months,  endorsed" 
by  J.  Carter.     Discounted  May  1.     Required  the  note,  the  unexpired  time,  and  discount. 

Ex.  6.  Received  W.  S.  Haven's  note  for  $1566,  in  my  favor,  dated  April  30,  1867,  at 
ninety  days.     Discounted  June  26.     Required  the  note,  the  unexpired  time,  and  discount 

Ex.  7.  Received  Hay  &  Wood's  note,  in  my  favor,  for  $1824,  dated  August  30,  1867,  at 
ninety  days.    Discounted  September  30.     Required  the  note,  unexpired  time,  and  discount. 

Ex.  8.  Received  H.  Winslow's  note,  in  my  favor,  for  $966,  dated  December  30,  1867,  at 
ninety  days.    Discounted  February  28.    Required  the  note,  the  unexpired  time,  and  discount. 

*  See  Note  4, 1st  Co.  Sales,  page  109. 

221 


DUFFS  BOOK-KEEPING. 

Ex.  9.  A  Judgment  Note. — (January  10,  p.  70.) 
S3000.fi^.  New  York,  January  10,  1867. 

Thirty  days  after  date,  for  value  received,  I  promise  to  pay  to  the  order  of 
P.  Duff,  THREE  THOUSAND  DOLLARS,  and  in  case  of  non-payment  at  maturity  I  hereby 
authorize  any  attorney  in  any  court  in  the  United  States  or  elsewhere,  to  enter  up  judgment 
upon  the  same,  without  stay  of  execution  or  benefit  of  any  exemption  law,  with  costs  and  five 
per  cent,  attorney's  fees  for  collecting. 

Thomas  Edwards. 

Note.— If  the  holder  wishes  to  enter  judgment  on  receipt  of  this  note,  leave  out  the  clause,  "  and  in  case  of  non-payment 
at  maturity." 


O 


FINAL  EXAMINATION. 


1 ,  What  is  the  fundamental  rule  in  Double  Entry  Book-Keeping  ?    (See  note  1,  page  26.^ 


What  constitutes  the  distinction  between  Single  and  Double  Entry  ?     (Note  1,  Bills 
Payable  account,  p.  17.) 

3.  How  is  the  capital  disposed  of  in  opening  books  by  Single  Entry,  in  an  individual  busi- 

ness?    (Note  1,  p.  7.) 

4.  How  in  Double  Entry  ?     (Notes  1  and  2,  Stock  acct.  p.  33.) 

5.  How  is  the  capital  disposed  of  in  opening  Partnership  Books  by  Single  Entry  ?     (Note 

2,  p.  7.) 

6.  How  in  Double  Entry?     (Note  1,  Duff's  acct.  p.  131.) 

7.  Is  there  any  difference  in  the  rule  for  conducting  personal  accounts  in  Single  and  Double 

Entry  ?     (Notes  3  and  4,  p.  7,  and  3  and  4,  p.  26.) 

8.  Is  there  any  difference  in  recording  Orders,  Drafts,  &c.  ?     (Note  5,  p.  7,  and  Rule 

9,  p.  40.) 

9.  What  is  the  use  of  the  Cash-Book  ?     (Note  1,  p.  9,  and  note  1,  p.  53.) 

10.  Where  are  all  cash  transactions  generally  first  entered  ?     (Note  6,  p.  53.) 

11.  What  is  done  with  the  Cash-Book  entries  as  they  are  transferred  to  the  Day-Book  or 

Journal?     (Note  7,  p.  53.) 

12.  How  do  we  ascertain  the  balance  of  money  in  hand  ?     (Note  4,  p.  53.) 

13.  How  are  the  Ledger  titles  for  money  received  and  paid  exhibited?     (N.  10  and  11, 

p.  53.) 

14.  How  are  entries  made  on  the  Day-Book  ?     (Note  5,  p.  24.) 

15.  What  is  meant  by  posting  a  Day-Book  or  Journal  ?     (Note  7,  p.  24.) 

16.  What  is  the  first  thing  to  be  done  after  the  Day-Book  or  Journal  is,  posted  ?     (Note  4, 

p.  14,  and  note  2,  p.  32.) 

17.  How  do  the  partners'  accounts  close  after  the  Profit  &  Loss  is  closed  into  them  ?    (Note 

2,  Duff's  account,  p.  15,  and  note  4,  p.  130.) 

18.  What  does  the  final  closing  entry  of  the  partners' account  represent?    (Note  1,  Gordon's 

acct.  p.  15;  note  1,  Balance  acct,  p.  134.) 

19.  What  will  it  represent  if  he  draws  out  more  than  he  has  in  the  firm  ?     (Note  2,  Balance 

acct.  p.  134.) 

20.  When  an  acct.  has  filled  up  its  space,  how  is  it  continued  to  a  new  page  ?     (Note  2, 

Wood's  acct.  p.  15,  and  note  1,  p.  102.) 

21.  How  does  an  account  re-open  on  the  same  page  ?     (Note  2,  Hay's  acct.  p.  1^ ,  and  note 

2,  p.  113.). 

22.  Upon  which  side  of  an  account  is  the  final  closing  entry  made  ?     (Sect,  i,  p.  18.) 

23.  Why  note  the  transfers  on  the  face  of  the  Ledger  folio?     (Note  6,  p.  18,  and  note  5^ 

Stock  acct.  p.  33.) 

24.  What  are  the  objections  to  making  original  entries  affecting  the  personal  accounts  on 

the  Ledger,  without  a  Day-Book  entry?     (Note  7,  p.  18,  and  note  3,  p.  25.) 

25.  What  is  the  general  rule  for  finding  the  gain  or  loss  in  Single  Entry  Book-Keeping  ? 

(Sect.  4,  p.  18. 

26.  How  is  it  found  in  Double  Entry?     (Note  4,  Profit  &  Loss  acct.  p.  35.) 

.222 


FINAL   EXAMINATION.— PAET  III. 

27.  What  balances  are  brought  down  in  re-opening  Single  Entry  books  ?     (Note  1,  p.  19.) 

28.  What  is  meant  by  closing  an  account?     (Note  6,  p.  23.) 

29.  Why  not  carry  Expense,  Commission,  and  Exchange  directly  to  Profit  &  Loss,  and  avoid 

opening  these  accounts?     (Note  4,  p.  24,  and  note  3,  p.  129.) 

30.  What  is  meant  by  checking?     (Note  2,  p.  32.) 

31.  What  is  the  use  of  the  Journal  ?     (6,  p.  25.) 

32.  How  may  this  book  be  dispensed  with  ?     (6,  p.  25,  and  5,  p.  91.) 

33.  What  other  title  would  better  express  the  nature  of  the  Stock  account  ?    (Note  1,  p.  26.) 

34.  Why  drop  the  ciphers  in  the  cent  column  ?     (Note  8,  p.  27.) 

35.  How  do  we  show  how  far  the  Day-Book  is  Journalized  ?     (7,  p.  29.) 

36.  How  do  we  show  how  far  the  Journal  is  posted  into  the  Ledger  ?     (6,  p.  29.) 

37.  What  is  to  be  done  when  the  Journal  is  posted  ?     (Note  2,  p.  32.) 

38.  What  must  be  done  before  attempting  to  close  the  Ledger  ?     (Note  3,  p.  32.) 

39.  Yv^hat  is  the  use  of  the  Trial  Sheet?     (Note  1,  p.  36.) 

40.  All  closing  entries  for  the  Balance  account  are  written  red,  while  Profit  &  Loss,  and 

all  others,  are  black.     Why  is  this  distinction  ?     (Note  6,  Stock  acct.  p.  33,  and 
note  7,  Merchandise  acct.  p.  33.) 

41.  What  composes  the  Dr.  and  Cr.  sides  of  Stock?     (Notes  1  and  2,  Stock  acct.  p.  33.) 

42.  What  composes  the  Dr.  and  Cr.  sides  of  Merchandise  ?     (Notes  1  and  2,  Mdse.  acct. 

p.  33.) 

43.  How  does  this  account  close  if  all  the  property  be  sold  ?     (Note  3,  Mdse.  acct.  p.  33, 

and  Rule  2,  p.  99.) 

44.  How  does  it  close  if  part  of  the  property  remain  in  hand  ?     (Note  5,  Mdse.  acct.  p.  33, 

and  Rule  2,  p.  99.) 

45.  What  is  an  Inventory,  and  where  is  it  entered  ?     (1st  entry,  pp.  59,  61, 137,  and  139.) 

46.  What  composes  the  Dr.  and  Cr.  sides  of  Bills  Receivable  account?    (Note  1,  Bills  Rec. 

acct.  p.  33.) 

47.  What  does  the  difi'erence  between  the  two  sides  represent  ? 

48.  How  does  this  account  always  close  ? 

49.  What  do  the  Dr.  and  Cr.  sides  of  the  Cash  account  represent?     (Cash  acct.  p.  34.) 

50.  What  does  the  difference  between  the  two  sides  represent  ? 

51.  How  does  this  account  always  close  ? 

52.  What  does  the  difference  between  the  sides  of  Bills  Payable  represent  ?     (Bills  Pay- 

able acct.  p.  34.) 

53.  How  does  this  account  always  close  ? 

54.  If  the  Dr.  side  be  $4000,  and  the  Cr.  side  $6000,  what  does  the  difference  represent  ? 

55.  How  do  all  personal  accounts  close  ?     (Hay's  acct.  note  2,  p.  34.) 

56.  How  do  property  accounts  close  if  all  or  part  of  the  property  be  on  hand  ?     (Case  2, 

Rule  2,  p.  99.) 

57.  What  do  the  Dr.  and  Cr.  sides  of  Profit  &  Loss  exhibit?     (Profit  &  Loss  acct.  p.  35.) 

58.  What  accounts  close  into  it  ?     (Note  2,  Profit  &  Loss,  p.  35 ;  Note  1,  Bell's  acct.  p. 

132;  Exchange  acct.  p.  133.) 

59.  When  is  this  account  closed,  and  into  what  account  or  accounts  does  it  close  ?     (Note  3, 

Profit  &  Loss,  p.  33  J  Sect.  4,  p.  130;  Note  2,  Profit  &  Loss,  p.  134.) 

60.  What  is  Expense  account  Dr.  for,  and  how  does  it  close  ?    (Note  1 ,  Exchange  acct.  p.  133.) 

61.  What  is  the  Exchange  account  Dr.  and  Cr.  for,  and  how  does  it  close  ?     (Note  1,  Exch. 

acct.  p.  133.) 

62.  What  is  the  Interest  account  Dr.  and  Cr.  for,  and  how  does  it  close?    .(Note,  Interest 

acct.  p.  168.) 

63.  What  is  the  Suspended  List  debited  for,  and  how  does  it  close  ?     (Note  6,  p'.  130;  Note 

7,  p.  129;  Note  1,  p.  134.) 

64.  What  is  to  be  done  when  a  suspended  account  is  paid?    (Note  1,  Martin's  acct.  p.  132.) 

65.  What  do  the  Dr.  and  Cr.  sides  of  Balance  account  represent?     (Balance,  p.  35.) 

66.  If  the  Dr.  side  be  $15000,  and  the  Cr.  side  $10000,  what  does  the  difference  represent? 

(Note  4,  Balance  acct.  p.  35.) 

67.  If  the  Drs.  be  $8000,  and  Crs.  $12000,  what  does  the  difference  represent?     (Note  3, 

Balance  acct.  p.  35.) 

223 


DUFF'S  BOOK-KEEPING. 

68.  What  precaution  is  necessary  in  closing  this  account?     (Balance  acct.  p.  85,  and  note 

4,  p.  130.) 

69.  Where  should  this  account  be  made?     (Sect.  1,  p.  19.) 

70.  What  is  meant  by  re-opening  a  Ledger?     (Note  1,  p.  113.) 

71.  Suppose  there  be  not  sufficient  space  under  the  old  account  to  re-open  ?    (Note  1,  p.  113.) 

72.  How  are  the  daily  average  sales  ascertained  for  any  given  time  ?     (Note  14,  p.  36.) 

73.  How  is  the  average  gain  per  cent,  ascertained  upon  sales  of  Merchandise  when  all  is  sold  ? 

(Note  15,  p.  36.) 

74.  How  if  part  of  the  Merchandise  remain  on  hand  ? 

75.  What  entry  is  made  of  an  invoice  of  a  consignment  received?     (Note  21,  p.  41.) 

76.  What  is  the  rule  for  keeping  account  of  consignments  received  ?     (liule  10,  p.  41.) 

77.  When  the  property  is  sold,  how  do  we  find  the  net  proceeds?     (Note  25,  p.  41.) 

78.  If  the  owner  of  this  consignment  draw  on  you  on  account  of  these  sales,  what  account  do 

you  debit  for  his  draft?     (Note  29,  p.  41.) 

79.  How  do  you  keep  account  of  property  which  you  consign  to  others  for  sale  on  your  own 

account?     (Rule  11,  p.  41.) 

80.  If  you  draw  on  the  consignee  on  account  of  a  consignment?     (Note  31,  p.  41.) 

81.  What  are  Joint  Accounts  ?     (Note  1,  p.  42.) 

82.  What  title  does  the  manager  of  a  joint  speculation  give  the  account  in  his  books? 

(Note  4,  p.  42.) 

83.  What  title  do  the  silent  partners  use  in  their  books  ?     (Note  9,  p.  42.) 

84.  What  is  the  general  rule  for  conducting  joint  accounts  as  manager  ?     (Rule  12,  p.  43.) 

85.  How  do  the  other  partners  keep  an  account  of  their  investments  in  the  speculation  t 

(Note  1,  2d  Co.  Shipment  to  London,  p.  Ill,  and  note  9,  p.  42.) 

86.  How  does  the  manager  find  the  net  proceeds  when  all  the  property  is  sold?     (Note  1, 

p.  43.) 

87.  How  if  part  of  the  property  remains  on  hand  ?     (Note  4,  1st  Co.  Sales,  p.  109.) 

88.  How  does  the  manager  find  his  net  gain  or  loss  ?     (Note  13,  p.  43,  and  note  3,  p.  80.) 

89.  What  is  the  rule  for  determining  the  maturity  of  an  acceptance  or  note  having  its 

running  time  in  days?     (Note  1,  p.  45.) 

90.  When  the  running  time  is  months  ?     (Note  3,  p.  45.) 

91.  When  will  one  day's  advance  in  the  date  of  a  note  give  three  or  four  days'  advance  in 

the  time  of  payment?     (Note  1,  p.  46.) 

92.  When  will  one  day's  advance  in  the  date  give  two  days'  advance  in  the  maturity  ?    (Note 

2,  p.  46.) 

93.  Upon  what  occasions  may  three  or  four  notes,  dated  on  different  days,  having  the  same 

running  time  in  months,  all  become  due  on  the  same  day?     (Note  1,  p.  47.) 

94.  When  will  two  notes,  dated  on  difi'erent  days,  having  the  same  running  time  in  months, 

become  due  on  the  same  day?     (Note  2,  p.  47.) 

95.  What  ought  to  be  done  with  notes  which  remain  in  hand  over  due  ?     (Note  4.  p.  52.) 

96.  How  do  we  enter  a  note  on  the  Bill  Book  when  received  ?     (Note  1,  p.  49.) 

97.  How  when  passed  away?     (Note  2,  p.  49.) 

98.  What  is  the  use  of  the  Invoice  Book?     (Note  1,  p.  58.) 

99.  Where  is  the  first  entry  of  an  Invoice  ?     (Note  3,  p.  58.) 

100.  What  particulars  of  an  Invoice  is  required  in  the  Day  Book  ?     (Note  3,  p.  58.) 

101.  What  is  the  use  of  the  Sales  Book  ?     (Note  1,  p.  62.) 

102.  When  this  book  is  not  kept,  where  are  the  particulars  of  the  sales  entered  ?    (N.  3,  p.  62.) 

103.  How  is  the  Commission  Sales  Book  kept?     (Note  1,  p.  65.) 

104.  What  composes  its  Dr.  and  Cr.  sides?     (Notes  2  and  3,  p.  65.) 

105.  Where  do  the  entries  pass  from  this  book?     (Sect.  3,  p.  66.) 

106.  How  is  the  net  proceeds  found,  and  how  is  it  disposed  of  when  found  ?     (N.  2,  p.  Qi\.') 

107.  How  do  you  enter  a  re-consignment  on  the  Commission  Sales  Book  ?     (Entry  Feb.  12, 

Commission  Sales  Book,  p.  67.) 

108.  Repeat  the  rule  for  equating  time  on  account  of  sales.     (Rule,  p.  68.) 

109.  Repeat  the  rule  for  the  Compound  Equation.     (Rule,  p.  116.) 

110.  Where  do  we  obtain  the  materials  for  opening  a  new  set  of  books  in  continuation  of 

old  ones?     (Note  1,  p.  69.) 

224 


FINAL  EXAMINATION.— PART  III. 

111.  How  can  a  new  set  of  books  be  opened  from  old  ones  without  passing  the  contenta 

through  the  Day  Book  and  Journal?     (Sect.  3.  p.  19.) 

112.  What  is  the  general  rule  for  correcting  errors  in  the  Ledger  ?     (Notes  2  and  5,  p.  98.) 

113.  What  is  the  general  rule  for  correcting  errors  in  the  Journal  ?    (Notes  10  and  2,  p.  98.) 

114.  How  are  errors  corrected  in  the  Day  Book?     (Notes  11  and  2,  p.  98.) 

115.  What  precaution  is  necessary  in  indexing  accounts?     (Note  1.  p.  100.) 

116.  Where  do  we  obtain  the  particulars  for  an  account  current?     (Note  3,  p.  114.) 

117.  Where  do  we  obtain  the  particulars  for  an  account  of  sales  ?     (Note  1,  p.  117.) 

118.  How  are  the  Cash  and  Merchandise  accounts  posted  from  the  six-column  Day-Book  or 

Journal?     (Note  7,  p.  124,  and  note  2,  p.  161.) 

119.  How  can  the  Merchandise  Drs.  be  posted  direct  from  the  Invoice  Book?    (N.  4,  p.  139.) 

120.  How  may  the  Merchandise  Crs.  be  posted  from  the  Sales  Book  ?     (Note  2,  p.  142.) 

121.  What  is  the  use  of  the  Private  Ledger?     (Note  1,  p.  173.) 

122.  What  accounts  are  kept  in  it?     (Pages  173  and  174.) 

123.  What  is  the  rule  for  settling  interest  on  partners'  capital?     (Page  180.) 

124.  What  is  the  rule  for  casting  1  and  10  per  cent,  commission  ?     (Rule,  p.  199.) 

125.  How  are  the  intermediate  rates  found  ? 

126.  What  is  the  rule  for  finding  interest  at  6  per  cent,  for  months?     (Rule,  p.  199.) 

127.  What  is  the  shortest  rule  for  finding  it  for  60  days  ?     (Rule,  p.  200.) 

128.  What  for  6  days? 

129.  What  if  the  rate  be  over  or  under  6  per  cent.  ? 

130.  What  is  the  mercantile  rule  for  settling  interest  on  running  accounts  ?  (Rule,  p.  201.) 

131.  What  rule  is  adopted  in  the  United  States  Courts  ?     (Rule,  p.  201.) 

132.  What  is  the  rule  for  working  storage  equations  ?     (Rule,  p.  208.) 

133.  What  is  the  rule  for  ascertaining  general  average?     (Rule,  p.  211.) 

134.  Repeat  the  rule  for  dividing  profits  in  proportion  to  time  and  amount  of  capital.    (Rule, 

p.  216.) 


DUFFS  BOOK-KEEPING. 
PART  IV. 

JOINT   STOCK   ACCOUNTS, 

ILLUSTRATED  IN  A  COMPLETE  SET  OF 

NATIONAL    BANK    BOOKS: 

AND  ONE  SET  OF 

RA.II.Il0^r)    BOOKS. 

TO  WHICH  IS  ADDED  A  FULL  SET  OF 

PRIVATE   BANKER'S   BOOKS. 


227 


INTRODUCTORY  REMARKS. 


In  the  following  set  of  National  Bank  Books,  we  present  all  the  practical  details  of  the 
first  six  months'  business,  from  the  preliminary  proceedings  of  the  originators  of  the  com- 
pany, down  to  the  declaration  of  the  first  dividend.  The  exercises  are  such  as  will  guide 
the  accountant  in  opening,  conducting,  and  closing  Joint  Stock  Books  of  any  kind. 

We  have  given  explanatory  notes  wherever  we  deemed  them  necessary  for  the  learner's 
information ;  but  for  the  rules  and  principles  of  the  science  he  must  refer  to  the  early  part 
of  the  work,  where  he  will  find  them  minutely  explained,  and  where  every  one  ought  to 
commence  the  study  of  it. 

In  the  transactions  recorded  in  Foreign  Bills  of  Exchange  we  have  to  acknowledge  our 
obligations  to  Messrs.  James  G-.  King  &  Sons,  Bankers  of  New  York,  for  valuable  inform- 
ation promptly  and  courteously  afforded  us  in  matters  upon  which  we  could  obtain  no 
information  from  other  Banks,  as  but  few  Joint  Stock  Banks  in  New  York  do  any  direct 
business  with  foreign  countries. 

We  have  arranged  the  forms  of  the  following  set  for  posting  by  three  different  methods, 
viz. : — 

First. — By  Journalizing  the  contents  of  the  General  Cash  Book. 

Second. — By  constructing  the  General  Cash  Book  so  as  to  admit  of  direct  posting  from 
it  to  the  Ledger. 

Third. — We  have  arranged  the  Ledger  Titles  upon  the  Keceiving  and  Paying  Teller's 
Cash  Books  in  such  form  as  to  admit  of  direct  daily  posting  from  these  books  to  the  Ledger 
without  the  intervention  of  either  a  Journal  or  General  Cash  Book,  introducing  the  greatest 
abridgment  that  the  process  will  admit  of 

For  obvious  reasons,  we  have  made  no  entries  of  the  present  premiums  upon  Gold. 

228 


MINUTE  BOOK. 


CITY  l^ATIONAL  BANK 


DECEMBER,  1866. 


1.  This  book  is  a  journal  of  the  preliminary  proceedings  of  the  Company.  We  have 
not  continued  it  after  the  general  business  of  the  Bank  commenced.  After  that  date  there 
is  but  little  to  record  but  the  date  and  names  of  the  members  present  at  each  meeting. 
The  book  is  usually  in  the  charge  of  the  Cashier, 


229 


DUFF'S  BOOK-KEEPIKG— PAKT  lY. 

MINUTES  OF  THE  BOARD  OF  DIRECTORS  OF 
THE  CITY  NATIONAL  BANK. 

FIKST  MEETING. 

The  provisional  Board  met  at  the  office  of  John  "Ward,  Esq.,  December  10th, 

186G. 

PRESENT. 

John  Ward,  Wm.  B.  Archer, 

James  Harper,  Wm.  Hay, 

Wm.  Major,  J.  C.  Baker. 

Mr.  Ward,  the  acting  President,  stated  that  Article  V.  of  the  Articles  of  Asso- 
ciation directs  us  to  call  a  meeting  of  the  Stockholders  for  the  purpose  of  electing 
three  additional  Directors,  to  complete  the  Board,  within  ten  days  of  the  date  when 
the  subscription  to  the  Capital  Stock  was  completed.  As  all  the  stock  has  been 
subscribed^  he  would  oifer  the  following  resolution : — 

Resolved,  That  the  subscribers  to  the  Capital  Stock  of  the  City  National  Bank 
be  notified  that  an  election  of  three  Directors,  to  complete  this  Board,  will  be  held 
at  this  office  on  the  20th  day  of  December,  1866,  between  the  hours  of  12  m.  and 

4  P.M. 

Adjourned  to  meet  on  December  20th.  CHAS.  P.  DUFF, 

Acting  Cashier. 

MINUTES  OF  SECOND  MEETING. 
Office  of  John  Ward,  Esq.,  Thursday,  December  20th,  1866. 

PRESENT. 

John  Ward,  Wm.  B.  Archer, 

J.  C.  Baker,  JTames  Harper, 

Wm.  Hay,  Wm.  Major. 

Mr.  Ward,  acting  President,  laid  before  the  meeting  the  following  report  of 
the  inspectors  of  elections. 

The  undersigned,  inspectors  of  the  election  of  Directors  for  the  City  National 
Bank,  hereby  certify  that  the  following  statement  is  the  true  and  correct  number 
of  votes  given  for  the  three  Directors  elected  this  day  at  the  office  of  John  Ward, 
Esq.,  by  the  Stockholders  of  the  said  Bank,  to  complete  the  Board  of  Directors  for 
the  same  for  the  year  1867  : — 

•   Thomas  Mitchell,  4400  votes. 
Kobert  Lenox,       4391     " 
Robert  Banks,       3998     " 

R.  C.  Root,  ^ 

Richard  Irvin,  ^Inspectors  of  Election. 
Thos.  B.  Smith,  j 
Sworn  before  me  this  20th  day  of  December,  1866. 

Thos.  Archer,  Alderman. 
230 


NATIONAL  BANK  ACC0UNT8. 

Mr.  Harper  then  offered  the  following  resolution,  which  was  adopted : — 
Kesolved,  That  Thomas  Mitchell,  Eobert  Lenox,  and  Kobert  Banks,  are  diilv 

elected  members  of  this  Board,  and  the  acting  Cashier  is  hereby  directed  to  notify 

the  said  parties  of  their  election. 

Mr.  Hay  then  proposed  the  following  resolution,  which  was  adopted : — 
Resolved,  That  the  Board  adjourns  to  meet  at  this  office  on  Monday,  December 

24th,  1866,  at  2  p.m.,  for  the  purpose  of  electing  a  President  and  Cashier. 
Adjourned. 

CHAS.  P.  DUFF, 

Acting  Cashier. 

MINUTES  OF  THE  THIRD  MEETING. 
At  the  office  of  John  Ward,  Esq.,  Monday,  December  24th,  1866. 

PRESENT. 
John  \yAKD,  Wm.  B.  Archer, 

James  Harper,  "Wm.  Hay, 

Wm.  Major,  J.  C.  Baker, 

Tho:n[as  Mitchell,  Robert  Lexox, 

Robert  Banks. 
Mr.  Ward  stated  that  the  Board  had  met  for  the  purpose  of  electing  Bank 
Officers  for  the  year  1867.  For  the  office  of  President  of  the  Board  he  understood 
(here  were  but  two  candidates,  Mr.  Archer  and  himself.  He  declined  saying  any 
thing  of  his  own  qualifications ;  but  of  his  friend  Mr.  Archer,  he  felt  it  his  duty 
to  say  that  his  long,  successful,  and  honorable  career  among  us  as  a  merchant 
eminently  fitted  him  for  this  responsible  office. 

Mr,  Hay  arose  and  stated  that  he  fully  agreed  with  Mr.  Ward  in  his  high 
opinion  of  his  friend  Mr.  Archer;  but  he  thought  the  members  of  the  Board  would 
agree  with  him  in  the  opinion  that  both  the  candidates  were  eminently  fitted  for 
the  office. 

Mr.  Lenox  then  moved  that  the  Board  proceed  with  the  election.  And  for  this 
purpose  he  nominated,  as  Judges,  Robert  Banks  and  Thomas  Mitchell,  who  were 
accepted. 

The  Directors  voted,  as  usual,  by  ballot,  and  the  Judges  reported 

For  John  Ward,  five  votes.  For  Wm.  B.  Archer,  four  votes. 

Mr.  Banks  then  announced  to  the  Board  that  Mr.  John  Ward  was  duly  elected 
President  of  the  City  National  Bank  for  the  year  1867. 
The  Board  next  proceeded  to  elect  the  Cashier. 
Mr.  Harper  nominated  Mr.  Chas.  P.  Duff. 
Mr.  Lenox  nominated  Mr.  Wm.  Draper. 

Upon  the  ballot  Mr.  Duff  received  six  votes ;  Mr.  Draper  received  three  votes. 
Whereupon  Mr.  Banks  announced   that  Mr.  Chas.  P.  Duff  was  duly  elected 
Cashier  of  the  City  National  Bank.  )p 

The  President  suggested  the  appointment  of  a  committee  of  three  to  procure  a 


suitable  building  for  the  Bank. 


231 


DUFF^S  BOOK-KEEPING— PAET  lY. 

Mr.  Ward  nominated  Mr.  Archer. 

Mr.  Harper  nominated  Mr.  Hay. 

Mr.  Lenox  nominated  Mr.  Banks. 

"When  the  following  resolution  was  read  and  adopted : — 

Resolved,  That  Messrs.  W.  B.  Archer,  Wm.  Hay,  and  Eobert  Banks,  are  hereby 
appointed  a  committee  to  procure  a  suitable  building  for  a  Bank,  and  report  upon 
the  same  at  the  next  meeting  of  the  Board. 

The  President  next  recommended  the  appointment  of  a  committee  to  draft  By- 
Laws  to  define  the  duties  and  regulate  the  powers  of  the  Officers  and  Directors 

Mr.  Major  nominated  Mr.  J.  C.  Baker. 

Mr.  Mitchell  nominated  Mr.  Robert  Lenox. 

Mr.  Hay  nominated  Mr.  Jas.  Harper. 

Whereupon  the  following  resolution  was  read  and  adopted : — 

Resolved,  That  Messrs.  J.  C.  Baker,  Robert  Lenox,  and  James  Harper,  are 
hereby  appointed  a  committee  to  draft  By-Laws  for  the  government  of  the  Officers 
and  Directors  of  this  Association. 

The  meeting  adjourned  to  meet  on  Monday,  December  31st,  1866. 

CHAS.  P.  DUFF, 

Cashier. 

MINUTES  OF  THE  FOURTH  MEETING. 
At  the  office  of  John  Ward,  Esq.,.Monday,  December  31st,  1866. 

PRESENT. 

The  Peesident, 
Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thos.  Mitchell, 

Wm.  Hay,  Robert  Lenox, 

Wm.  Major,  Robert  Banks. 

After  reading  the  minutes  of  the  last  meeting,  Mr.  Archer,  chairman  of  the 
Committee  on  Bank  Building,  reported,  That,  not  being  able  to  find  a  building  that 
they  can  recommend  for  purchasing,  the  committee  advise  the  Board  to  lease  the 
premises  No.  41  Wall  Street,  recently  occupied  as  a  Banking  House  by  Messrs. 
Greenwood,  Cox  &  Co.  Immediate  possession  can  be  obtained  at  a  rent  of  $4000 
per  annum,  and  the  committee  are  of  the  opinion  that  $1400  will  cover  all 
expenses  necessary  to  prepare  the  building  for  our  business. 

Mr.  Mitchell  then  offered  the  following  resolution,  which  was  adopted : — 

Resolved,  That  the  President  is  hereby  authorized  to  lease  the  premises  No. 
41  Wall  Street,  for  a  term  of  five  years  from  the  first  day  of  January,  1867,  for 
the  use  of  this  Association,  and  to  contract  for  such  repairs  and  improvements  upon 
the  same  as  he  may  deem  necessary  to  fit  them  for  our  Bank,  and  that  the  expenses 
of  all  such  repairs  and  improven^nts,  together  with  the  rents  of  the  said  premises, 
during  the  said  lease,  be  paid  out  of  the  funds  of  the  Bank. 

Mr.  Lenox  proposed  the  following,  which  was  also  adopted  : — 

232 


NATIOISTAL  BANK  ACCOUNTS. 

Eesolved,  That  the  Cashier  is  authorized  to  purchase  the  necessary  furniture 
books,  stationery,  and  such  other  articles  as  he  and  the  President  shall  deen' 
necessary  to  prepare  the  Bank  for  business. 

The  President  then  stated, that  about  $300,000  of  the  Capital  Stock  had  been 
paid  in.  Would  it  not  be  proper  to  invest  a  part  of  this  amount  in  United  States 
Bonds? 

Whereupon  Mr.  Harper  moved  the  following  resolution : — 

Besolved,  That  the  President  is  hereby  authorized  to  invest  in  United  States 
Bonds  such  amount  of  the  funds  of  this  Association,  now  in  hand,  as  he  may  deem 
expedient.     Adopted. 

Mr.  Banks  then  proposed  the  following  resolution,  which  was  also  adopted : — 

Eesolved,  That  the  third  instalment  of  50  per  cent,  of  the  Capital  Stock  of 
this  Association  shall  be  due  and  payable  on  the  10th  day  of  January  next  ensuing, 
and  that  the  Cashier  notify  the  subscribers  of  the  same. 

Mr.  J.  C.  Baker,  from  the  Committee  on  By-Laws,  presented  their  report,  which 
was  read,  adopted,  and  ordered  to  be  engrossed  in  a  suitable  book  for  reference  by 
the  Directors  and  Officers, 

Mr.  Banks  stated  that  the  repairs  of  the  Banking  rooms  could  no  doubt  be  so 
far  completed  as  to  admit  of  holding  their  next  meeting  in  them ;  Therefore, 

Eesolved,  That  the  Board  shall  meet  at  their  Bank,  No.  41  Wall  Street,  on  the 
5th  day  of  January  next,  at  12  M.,  for  the  purpose  of  appointing  clerks,  &c.    Passed. 

Adjourned. 

CHAS.  P.  DUFF, 

Cashier. 

MINUTES  OF  THE  FIFTH  MEETING. 

At  the  City  National  Bank,  Saturday,  January  5th,  1867. 

PRESENT. 

The  President, 
Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thomas  Mitchell, 

Wm.  Hay,  Egbert  Lenox, 

Wm.  Major,  Egbert  Banks. 

The  minutes  of  last  meeting  were  read. 

The  President  stated  that  he  had  leased  the  premises  in  which  we  are  now  met, 
for  the  use  of  the  Bank,  for  five  years  from  the  1st  instant,  for  the  annual  rent  of 
§4000,  and  that  he  had  contracted  with  B.  Carpenter  &  Co.  for  the  necessary  repairs 
and  alterations  for  $1400.  He  also  stated  that  he  had  invested  $200,000  of  the 
Bank  funds  in  United  States  Five-Twenty  Bonds,  bearing  interest  at  6  per  cent., 
which  he  had  deposited  v/ith  the  Comptroller  of  the  Currency  of  the  United  States, 
at  Washington,  as  security  for  the  issues  of  the  Bank,  as  required  by  the  "National 
Currency  Act,"  which  now  authorizes  us  to  commence  business,  which  he  would 
recommend  the  Board  to  announce  at  an  early  day ;  Therefore, 

233 


DUFF^S  BOOK-KEEPING— PART  lY. 

Resolved,  That  the  Cashier  give  public  notice  that  the  City  National  Bank 
will  be  open  for  business  on  the  10th  inst. 

Mr.  Archer  moved  that  the  Board  now  consider  the  appointment  of  General 
Book-keeper,  Teller,  &c.  There  were  a  number  of  applicants  for  each  office,  but 
he  hoped  the  Board  would  deem  it  their  duty  to  allow  no  consideration  to  influence 
these  appointments  but  that  of  capability. 

After  considering  the  credentials  of  the  different  applicants,  the  following 
appointments  w^ere  agreed  upon  : — 

For  General  Book-keeper,  W.  J.  Parker. 

For  First  Teller,  (Paying,)  J.  J.  Jones. 

For  Second  Teller,  (Receiving,)  Geo.  Dexter. 

For  Messenger,  Simon  Parry. 

The  Cashier  was  directed  to  apprize  the  parties  of  their  appointment,  and  to 
request  them  to  execute  the  necessary  bonds,  with  sureties,  to  lodge  with  the 
President  on  or  before  the  lOtli  instant. 

These  appointments  were  deemed  sufficient  for  the  business  of  the  Bank  at  its 
commencement.     Others  are  left  until  increased  business  requires  them. 

Adjourned  to  meet  10th  instant. 

CHAS.  P.  DUFF, 

Cashier. 

MINUTES  OF  THE  SIXTH  MEETING. 

At  the  City  National  Bank,  Thursday,  January  10th,  1867. 

PRESENT. 

The  President, 
Wm.  B.  Archer,  J.  C.  Baker, 

James  Harper,  Thomas  Mitchell, 

Wm.  Hay,  Egbert  Lenox, 

Wm.  Major,  Robert  Banks. 

The  minutes  of  the  last  meeting  were  read. 

The  President  stated  that  the  officers  appointed  at  the  last  meeting  had  executed 
and  lodged  with  him  the  necessary  bonds,  with  sureties,  and  had  entered  upon 
their  duties ;  and  the  Comptroller  of  the  Currency  having  authorized  us  to  com- 
mence business,  the  Bank  was  accordingly  opened  this  morning. 

The  Offisring  Book  was  then  laid  before  the  Board,  and  such  notes  as  were 
approved  were  passed. 

Adjourned.  CHAS.  P.  DUFF, 

Cashier. 
234 


NATIONAL  BANK  ACCOUNTS. 

BY-LAWS  OF  THE  CITY  NATIONAL  BANK, 

ADOPTED  DECEMBER  31,  1866. 

Article  I. — The  Bank  shall  be  open  for  general  busin'ess  every  weekday  from 
10  A.M  till  3  P.M.,  except  holidays  and  such  days  as  the  Government  appoint 
as  public  fast-days.  And  the  Board  of  Directors  shall  meet  for  the  transac- 
tion of  their  regular  business  every  weekday  from  12  M.  to  1  p.m. 

Article  II. — The  President,  when  present,  shall  preside  at  all  the  meetings  of 
the  Board.  In  case  of  his  absence,  a  majority  of  the  members  present  shall 
elect  a  President  pro  tem.  And  at  all  meetings  of  the  Board  the  President 
or  Cashier,  with  four  Directors,  shall  constitute  a  quorum  for  the  transaction 
of  business. 

Article  III. — There  shall  be  a  standing  committee  of  Two,  called  the  Examining 
Committee,  who  shall  inspect  the  assets  of  the  Bank,  compare  them  with  the 
books,  and  make  quarterly  reports  of  the  same  to  the  Board.  These  commit- 
tees are  elected  as  follows.  The  President  nominates  a  member  of  the  Board. 
If  this  member  is  approved,  he  nominates  a  second,  who,  if  approved,  in  turn 
nominates  a  third  :  the  yeas  and  nays  being  taken  on  each  nomination. 

Article  IV. — A  book  of  minutes  shall  be  kept  of  the  meetings  of  the  Board, 
recording 

The  names  of  each  member  present, 
The  resolutions  adopted, 
And  other  general  business  of  the  Board. 

Article  Y. — The  President,  on  entering  upon  his  duties,  must  subscribe  to  the 
following  oath : — "  I,  the  undersigned,  do  solemnly  swear  (or  affirm)  that  I 
will  truly  and  faithfully  administer  and  discharge  all  the  duties,  trusts,  and 
obligations  devolving  upon  me  as  President  elect  of  the  City  National  Bank 
of  New  York,  and  deliver  the  same  to  the  custody  of  my  successor." 

Article  YI. — The  Cashier  and  Clerks  employed  by  the  Board  must  give  such 
bonds  and  sureties,  for  the  faithful  performance  of  their  several  duties,  as  shall 
be  satisfactory  to  the  Board ;  these  bonds  to  remain  in  the  custody  of  the 
President. 

Article  YII. — All  business  transactions  of  the  Board,  the  votes  and  opinions 
of  members,  the  business  of  the  customers  of  the  Bank,  with  the  state  of  their 
accounts,  shall  be  held  in  the  strictest  confidence,  and  never  disclosed  out  of 
the  Bank,  unless  required  in  a  court  of  justice. 

Article  YIII. — The  Cashier  shall  be  required  to  lay  before  the  Poard,  at  their 
meetings,  all  such  statements  of  the  affairs  of  the  Bank  as  they  require,  in 
reference  to 
Its  Liabilities  and  Assets. 

235 


DUFFS  BOOK-KEEPING— PART  LY. 

The  Liabilities  as  principals  and  endorsers  of  customers. 

Discounted  Notes  on  hand. 

Discounted  Notes  under  protest. 

Overdrafts  of  Depositors. 

Notes  of  the  Bank  in  circulation. 

Deposits  on  hand. 

Specie  on  hand. 

To  register  all  notes  put  in  circulation. 

To  check  the  Tellers'  Books  and  balances. 

To  report  promptly  all  delinquencies  connected  with  the  Bank. 

Article  IX. — The  Cashier  shall  pay  all  the  expenses  of  the  Bank,  and  report 
the  same  to  the  Board  monthly. 

Article  X. — In  granting  loans  to  individuals  on  collateral  security,  the  vote 
of  the  members  present  shall  decide  the  acceptance  or  rejection  of  the  appli- 
cation. If  there  be  a  tie,  the  President  may  give  the  casting  vote.  When  he 
deems  the  security  unexceptionable,  the  President  may  discount  business- 
paper  between  the  meetings  of  the  Board,  to  an  amount  not  exceeding  $10,000 ; 
and  he  may  purchase  Foreign  Bills  of  Exchange  of  undoubted  security,  to  an 
amount  not  exceeding  $50,000 ;  but  he  must  report  all  such  transactions  to 
the  Directors  at  their  next  meeting.  No  note  or  draft  will  be  accepted  for 
discount  for  less  than  $100,  and  none  for  collection  for  less  than  $50. 

Article  XI. — The  Board  may  at  any  time  reconsider  any  question  or  resolution 
before  it,  unless  the  motion  to  reconsider  be  negatived  by  the  President. 

Article  XII. — When  any  Director  shall  cease  to  own,  in  his  own  right,  Ten 
Shares  of  the  Capital  Stock  of  the  Bank,  he  shall  vacate  his  seat  at  the  Board, 
and  a  majority  of  the  remaining  Directors  shall  elect  his  successor. 

Article  XIII. — No  Teller,  Clerk,  or  Book-keeper  shall  be  allowed  to  keep  an 
account  of  deposit  with  the  Bank. 

Article  XIY. — The  following  salaries  shall  be  paid  the  officers  and  employees 
of  the  Bank  for  the  year  1867,  payable  quarterly,  viz.: — 

To  the  President $2000  per  annum. 

To  the  Cashier 1800         " 

To  the  General  Book-keeper 1 500  " 

To  the  Receiving  Teller 1000  " 

To  the  Paying  Teller 1000  " 

To  the  Messenger 600  "      . 

$7,900 

Article  XY." — The  foregoing  By-Laws  may  be  amended  by  a  vote  of  two-thirds 
of  the  entire  Board,  upon  one  week's  previous  notice  of  the  motion. 

Adopted,  by  resolution  of  the  Board  of  Directors,  December  31,  1866. 

236 


ARTICLES  OF  ASSOCIATION. 

CITY  I^ATIONAL  BANK. 

1866. 


237 


DUFFS  BOOK-KEEPING— PART  IV. 
ARTICLES  OF  ASSOCIATION  OP  THE 

CITY  NATIONAL  BANK  OF  NEW  YORK. 

Know  all  men  by  these  presents,  that  we  who  have  hereunto  subscribed  oui 
names  and  set  our  seals  do  hereby  associate  ourselves  for  the  purpose  of  conducting 
the  business  of  Banking,  under  the  Act  of  Congress  of  the  United  States  to  provide 
for  a  National  Currency,  secured  by  pledge  of  United  States  Stocks,  approved 
June  3d,  1864.  And  we  hereby  bind  ourselves,  our  heirs,  administrators,  and 
assigns,  to  comply  with  all  the  regulations  and  obligations  of  the  following  articles, 
hereby  solemnly  ratifying  and  confirming  the  same  as  our  Articles  of  Association. 

Article  I. — Our  Association  shall  be  called  the  City  National  Bank,  and 
shall  be  situated  in  the  City  of  New  York,  with  a  Capital  Stock  of  Six 
Hundred  Thousand  Dollars,  divided  into  Six  Thousand  Shares  of  One  Hun- 
dred Dollars  each,  agreeably  to  Section  12  of  said  Act  of  Congress. 

Article  II. — The  first  instalment  of  Thirty  Dollars  on  each  share  of  the 
above-named  Capital  Stock  shall  be  due  and  payable  within  five  days  after 
signing  these  articles,  and  the  second  instalment  of  Twenty  Dollars  shall 
be  due  and  payable  witjiin  twenty  days  after  subscribing  to  these  articles. 
The  dates  of  payment  for*the  balance  of  the  Capital  Stock  to  be  named  by  the 

^  Board  of  Directors,  to  be  chosen  as  hereinafter  prescribed,  for  the  direction 
and  management  of  our  Bank.  All  instalments  shall  be  payable  in  lawful 
money  of  the  United  States,  or  such  funds  as  are  readily  convertible  into  the 
same. 

Article  III. — The  powers  and  privileges  conferred  upon  our  Association  by  the 
aforesaid  Act  of  Congress,  authorize  us  tcr  delegate  the  management  of  our 
*  business  to  Nine  Directors,  of  whom  a  majority  shall  constitute  a  quorum,  who 
are  further  authorized  to  appoint  a  President,  Cashier,  and  Clerks,  and  to 
determine  their  salaries  and  their  duties ;  and  also  to  enact  and  adopt  such 
By-Laws,  not  at  variance  with  the  aforesaid  Act  of  Congress,  or  with  any  of 
these  Articles,  as  they  shall  deem  necessary  for  the  regulation  of  the  busines.« 
of  the  Bank. 

Article  IV. — The  Board  of  Directors  shall  be  composed  exclusively  of  citizens 
of  the  United  States ;  and,  agreeably  to  Section  9  of  the  aforesaid  Act,  no 
person  shall  be  eligible  to  a  seat  in  the  Board  who  does  not  hold  in  his  own 
name  at  least  Ten  Shares  of  the  Capital  Stock ;  and  we  hereby  nominate  and 
appoint  the  following  parties  as  a  Provisional  Board  of  Directors,  leaving  the 
remaining  three  seats  to  be  filled  by  the  election  of  the  Stockholders : — 
John  Ward,  Wm.  B.  Archer, 

James  Harper,  Wm.  Hay, 

Wm.  Major,  J.  C.  Baker. 

,  And  we  further  appoint  the  said  John  Ward  President  pro  tem.,  and  CnAb; 
P.  Duff  Cashier  pro  tem. 

238 


NATIONAL  BANK  ACCOUNTS. 

Article  Y. — An  election  to  complete  the  Board  of  Directors  shall  be  called  by 
our  said  President  pro  tern,  within  ten  days  after  the  subscription  to  our 
Capital  Stock  is  completed ;  and  there  shall  be  an  annual  election  of  Directors 
for  our  Association  held  in  the  City  of  New  York  on  the  first  Monday  in 
January ;  ten  days'  previous  notice  of  said  election  to  be  published  in  two 
of  the  city  daily  papers.  Each  Stockholder  shall  be  entitled  to  one  vote  on 
each  share  of  stock  held  by  him. 

Article  YI. — At  their  first  meeting,  or  as  soon  after  as  practicable,  the  Directors 
shall  elect  by  ballot  one  of  their  number  as  President  of  this  Association,  who 
sliall  be,  and  who  is  hereby,  acknowledged  as  the  official  head  of  this  Asso- 
ciation ;  who,  when  present,  shall  preside  at  all  meetings  of  the  Board,  and 
who  is  hereby  authorized  and  empowered,  with  the  consent  of  the  said  Board, 
to  purchase  and  convey  all  such  Eeal  Estate  as  it  may  be  lawful  for  this 
Company  to  hold ;  to  buy,  sell,  and  transfer  stocks,  bonds,  and  mortgages,  or 
other  property  or  evidences  of  debt,  held  as  security  or  belonging  to  this 
Company,  and  to  receive  all  rents,  dividends,  and  incomes  arising  from  the 
same ;  to  invest  the  funds  of  the  Company  in  United  States  Bonds,  and  to 
deposit  the  same  with  the  Comptroller  of  the  United  States  Currency,  in  the 
City  of  Washington,  as  security  for  the  notes  put  in. circulation  by  this  Bank, 
and  to  sign  all  its  notes  so  put  in  circulation ;  to  sue  and  be  sued  for  values 
claimed  by  or  of  this  Company ;  to  grant  and  sign  Powers  of  Attorney  for 
special  purposes ;  and  to  perform  all  other  acts  consistent  with  these  Articles 
of  Association,  and  the  aforesaid  Act  of  Congress,  that  may  be  beneficial  to 
this  Association.  And  in  case  of  the  unavoidable  absence  of  the  President,  the 
Board  of  Directors  are  hereby  empowered  to  elect  a  President  pro  tem.,  who 
is  authorized  to  perform  all  the  aforesaid  duties  until  the  President  can  resume 
his  office,  or  until  a  new  President  is  elected. 

Article  YII. — The  Directors  shall  appoint  the  Cashier,  who  shall  keep  the 
minutes  of  the  meetings  of  the  Board,  countersign  and  register  all  notes  issued, 
examine  the  books  of  the  Tellers'  accounts,  and  conduct  the  business  of 
the  Bank  agreeably  to  the  instructions  of  the  Board,  furnishing  them  at  all 
times  with  such  information  as  they  may  require. 

Article  YIII. — The  Board  of  Directors  shall  require  the  Cashier,  Tellers,  and 
all  other  employees,  before  entering  on  their  duties,  to  give  bonds,  with  sureties 
satisfactory  to  the  President,  for  the  faithful  discharge  of  all  trusts  and  duties 
required  of  them. 

Article  IX. — The  Board  of  Directors  are  authorized  to  appoint,  from  time  to 
time,  committees  composed  of  their  own  body,  and  to  empower  them  to 
transact  special  matters  of  business,  and  to  revoke  such  appointments  at 
pleasure.  They  are  also  authorized  to  appoint  three  of  the  Stockholders  to 
serve  as  Inspectors  and  Judges  to  conduct  the  annual  elections  of  Directors, 
But  no  Director  can  be  eligible  to  the  office  of  judge  of  elections.     And  we 

239 


DUFFS  BOOK-KEEPING— PART  lY. 

hereby  nominate  and  appoint  R.  C.  Root,  Richaed  IpwVIN,  and  Thos.  B 
Smith  inspectors  of  our  first  election  of  Directors. 

Article  X. — The  Cashier  pro  tern,  shall  grant  receipts  to  the  subscribers  of  the 
Capital  Stock  for  each  instalment  as  paid  in,  such  receipts  to  be  countersigned 
by  the  President  pro  tern.  No  Certificate  of  Stock  shall  be  granted  to  any 
subscriber  until  the  whole  amount  of  the  subscription  is  paid  in. 

Article  XI. — All  Certificates  of  Stock  shall  be  signed  by  the  Cashier  and  the 
President,  and  all  transfers  of  stock  shall  invest  the  new  holders  with  all  the 
rights  and  privileges,  interests  and  obligations,  conferred  by  these  Articles ;  and 
each  subscriber  to  these  Articles,  in  consideration  of  the  number  of  shares  set 
aside  for  him  or  her,  hereby  holds  himself  or  herself  bound  by  these  Articles 
for  the  full  amount  of  such  shares  of  Capital  Stock  as  are  written  opposite  his 
or  her  name,  hereby  binding  themselves  to  make  punctual  payment  of  all 
instalments  due  on  the  same  by  these  Articles,  or  by  subsequent  orders  of  the 
Board  of  Directors,  and  to  pay  six  per  cent,  interest  upon  any  instalments 
that  may  remain  overdue ;  and  when  any  instalment  is  withheld  for  sixty 
days,  the  Directors  are  hereby  empowered  and  authorized  to  transfer,  forfeit, 
and  sell  for  the  benefit  of  this  Association  such  share  or  shares,  with  all  pay- 
ments made  on  the  same,  agreeably  to  Section  15  of  the  aforesaid  Act  of 
Congress,  and  to  erase  the  name  or  names  representing  the  same  from  the 
books  of  the  Company. 

Article  XII. — The  Directors  are  authorized  to  pay  all  expenses  of  this  Associa- 
tion out  of  the  funds  of  the  same.  And  for  the  general  information  of  the 
Stockholders,  they  shall  make  out  and  submit  to  their  inspection  semi-annual 
statements  of  the  Assets,  Liabilities,  Expenditures,  and  Profits,  verified  by  the 
Cashier  and  President ;  and  the  Directors  shall  declare  and  pay  the  Stock- 
holders such  dividends  as  they  may  deem  proper  out  of  the  net  profits  of  the 
Company. 

Article  XIII. — This  Association  shall  commence  business  in  the  month  of 
January  in  the  year  of  our  Lord  One  Thousand  Eight  Hundred  and  Sixty- 
Seven,  and  shall  have  succession  by  the  name  designated  in  these  Articles  for 
twenty  years,  agreeably  to  Section  8  of  the  aforesaid  Act  of  Congress,  unless 
sooner  dissolved  by  the  act  of  the  Shareholders. 

Article  XIY. — The  Directors  of  this  Association  may  at  any  time  propose 
amendments  to  these  Articles,  upon  giving  thirty  days'  notice,  with  a  copy  of 
the  proposed  amendments,  to  each  Stockholder ;  and  upon  the  representatives 
of  two-thirds  of  the  Capital  Stock  signing  their  written  consent  to  the  same, 
then  the  said  amendments  shall  become  as  binding  on  the  Company  as  the 
Articles  above  written  and  now  adopted. 

240 


NATIONAL  BANK  ACCOUNTS. 

We,  the  undersigned,  subscribe  to  the  foregoing  Articles  of  Association  of  the  City 
National  Bank  op  New  York,  and  for  the  Capital  Stock  of  the  same  set  opposite  our 
names  and  seals  at  the  date  of  subscription. 


Date. 

Number  of  Shares. 

Shares. 

Sigxatcre  Ayj)  Seal. 

Residence. 

1866. 

Dec. 

1 

I  subscribe  for  Five  Hundred  Shares, 

500 

John  Ward,     .     .     . 

Seal, 

New  York. 

I  subscribe  for  Five  Hundred  Shares, 

500 

Jas.  Harper,      .    . 

Seal, 

New  York. 

I  subscribe  for  One  Hundred  Shares, 

100 

James  W.  Cox,    .  '  . 

Seal, 

New  York. 

I  subscribe  for  One  Hundred  Shares, 

100 

J.C.Baker,  .     .     . 

Seal, 

Jersey  City. 

I  subscribe  for  One  Hundred  Shares, 

100 

Wm.  H.  Duff,  .     .     . 

Seal, 

Pittsburgh,  Pa. 

I  subscribe  for  Two  Hundred  Shares, 

200 

Wm.Hay,     .     .     . 

Seal, 

Brooklyn. 

We  subscribe  for  Three  Plundred  Shares 

300 

Barclay,  Hope  &  Co. 

,  Seal, 

New  York. 

5 

I  subscribe  for  Fifty  Shares,     .     .     . 

50 

Harriet  Lenox, 

Seal, 

New  York, 

I  subscribe  for  One  Hundred  Shares, 

100 

Robert  Lenox,      .     . 

Seal, 

New  York- 

I  subscribe  for  Two  Thousand  Shares, 

2000 

W.B.  Archer,    .     . 

Seal, 

New  York. 

I  subscribe  for  One  Hundred  Shares, 

100 

R.C.Eoot,.     .     .     . 

Seal, 

New  York, 

10 

I  subscribe  for  One  Hundred  Shares, 

ICO 

P.  Duff,     .... 

Seal, 

Pittsburgh,  Pa. 

I  subscribe  for  T^venty  Shares,     .     . 

20 

Wm.  Draper,     .     . 

Seal, 

Buffalo,  N.  Y. 

I  subscribe  for  Thirty  Shares,   .     .     . 

30 

James  E.  Compton, 

Seal, 

Lockport,  N.  Y. 

I  subscribe  for  One  Hundred  Shares, 

100 

Samuel  Warren,     . 

Seal, 

Brooklyn. 

I  subscribe  for  Six  Hundred  Shares, 

600 

Eobert  Banks,      .     . 

Seal, 

Jersey  City. 

We  subscribe  for  One  Hundred  Shares, 

100 

Eichard  Irvin  &  Co. 

Seal, 

New  York. 

I  subscribe  for  Five  Hundred  Shares, 

500 

Thos.  Mitchell,    .     . 

Seal, 

New  York. 

I  subscribe  for  One  Hundred  Shares, 

100 

Thos.  B.  Smith, .     . 

Seal, 

New  York. 

I  subscribe  for  One  Hundred  Shares, 

100 

James  Harper,     .     . 

Seal, 

New  York, 

I  subscribe  for  Three  Hundred  Shares, 

300 

AVm.  Major,  .     .     . 

Seal, 

Brooklyn. 

6000 

In  witness  to  the  foregoing  subscriptions  and  signatures,  we,  the  undersigned,  hereunto 
set  our  hands  and  seals,  in  the  City  of  New  York,  this  tenth  day  of  December,  A.D.  1866. 

John  Ward,  President  pro  tem.  Seal. 

Chas.  P.  Duff,  Cashier  pro  tem.  SeaJ. 

241 


INSTALMENT  LIST. 


INSTALMENT  No.  1. 

Subscribers  to  the  Capital  Stock  of  the  City  National  Bank.     Thirty  Dollars  per 
.share  due  December  1st  to  15th,  1866.     Agreeably  to  Articles  of  Association,  Article  II. 


When  Doe. 

When  Rec'd. 

SOBSCEIBERS'  NAMES. 

Shares. 

Instat.mknt. 

INT. 

Amount  Rec'd. 

1866. 

18661 

Dec. 

6 
G 

Dec. 

1 
5 

Barclay,  Hope  &  Co.,  . 
John  Ward,     .     .     . 

300 
500 

9000 
15000 

9000 
15000 

6 

5 

James  Harper,    . 

500  i 

15000 

15000 

6 

5 

Jas.W.  Cox,    . 

, 

100 

3000 

3000 

6 

5 

J.C.Baker,  .     . 

100  1 

3000 

3000 

6 

6 

Wm.  H.  Duff,  . 

100  1 

j      3000 

3000 

6 

9 

Wm.  Hay,      .     . 

200  1 

1      6000 

3 

6003 

10 

10 

Harriet  Lenox, 

50  ! 

1      1500 

1500 

10 

10 

Robert  Lenox,    . 

100  i 

3000 

3000 

10 

10 

Wm.  B.  Archer, 

2000  1 

60000 

60000 

10 

10 

B.  C.  Boot,    .     . 

100  1 

!      3000 

3000 

15 

15 

P.  Duff,.     .     .     . 

100 

1      3000 

3000 

15 

15 

Wm.  Draper, 

20 

600 

600 

15 

15 

Jas.  B.  Compton, 

30  i 

900 

900 

15 

15 

Samuel  Warren, 

100  1 

3000 

* 

3000 

15 

15 

Bobert  Banks, 

600 

18000 

18000 

15 

15 

Bichard  Irvin  &  ( 

)0.[    . 

100  ' 

'      8000 

3000 

15 

15 

Thos.  Mitchell, 

500  ' 

1    15000 

15000 

15 

18 

Thos.  B.  Smith,  . 

100 

3000 

1 

50 

3001 

50 

15 

18 

James  Harper, 

. 

100 

j      3000 
9000 

1 

50 

3001 

50 

15 

18 

Wm.  Major,  .... 

300 

^ 

50 

9004 

50 

6000 

180000 



10 

50" 

Interest,    .     . 
Dec.  1  Ent'd  Cash  Bool 

;:1 

10 

50 
50 

180010 

180010 

"50 

9000 

5      //        "        '/ 

1 

36000 

6       '/         "        " 

1 

3000 

9       '/         "         " 

1 

6000 

10       //         "         " 

1 

67500 

15       "         '/         " 

1 

43500 

18      II        II        II 

1 

15000 

H             If             II 

1 

10 

50 

180010 

50" 

24 

2 

. 

INSTALMENT  LIST. 


INSTALMENT  No.  2. 

Subscribers  to  the  Capital  Stock  of  the  City  National  Bank.     Twenty  Dollars  per 
share  due  December  21st  to  31st,  1866.     Agreeably  to  Articles  of  Association,  Article  II. 


1 

When  Due. 

When  Rec'd 

Sdbsceibees'  Names. 

Shares, 

Instalment. 

1 

Tut. 

Amount  Rec'd. 

1866. 

1866. 

Dec 

21 

Dec. 

19 

John  Ward, 

500 

10000 

10000 

21 

19 

James  Harper,      .     .     . 

500 

10000 

10000 

21 

19 

Jas.  W.  Cox, 

100 

2000 

2000 

211 

21 

J.C.Baker 

100 

2000 

2000 

21 1 

21 

Wm.  H.Duflf,      .... 

100  i 

2000 

2000 

21 

21 

Wm.  Hay, 

200, 

4000 

4000 

211 

27 

Barclay,  Hope  &  Co.,  .     . 

300 

6000 

6 

6006 

25! 

25 

Harriet  Lenox,      .     .     . 

50 

1000 

1000 

25  i 

25 

Robert  Lenox,    .... 

100  i 

2000 

2000 

25 1 

28 

Wm.  B.Archer,    .     .     . 

2000 

40000 

20 

40020 

25 

25 

B.C.  Root, 

100 

2000 

2000 

30 

28 

P.  Duff, 

100 

2000 

2000 

30 

28 

Wm.  Draper,       .... 

20 

400 

400 

30! 

28 

Jas.  R,  Compton,  .     .     . 

30 

600 

600 

30 

30 ! 

Samuel  Warren,       .     .     . 

100! 

2000 

2000 

30  i 

31 

Robert  Banks,      .     .     . 

boo; 

:     12000 

2 

12002 

30 

30 

Richard  Irvin  &  Co.,   .     . 

100 

2000 

2000 

30i 

30 

Thomas  Mitchell,      .     . 

500 

loooa 

10000 

301 

30 

Thos.  B.  Smith,  .... 

100 

2000 

2000 

301 

30 

James  Harper,      .     .     . 

100 

i       2000 

2000 

30 1 

1 

30 

Wm.  Major, 

300; 

6000' 

i       6000 

— 

6000 

!  120000 

28 

Interest, 

- 

Dec.  19  Ent'd  Cash  Book  1 

28 

— 

'  120028 

1 

120028 

22000 

21      tf         ,1         It      1 

8000 

25      //         "         '/      1 

5000 

27      //         •■'        li      1 

6000 

1 

28      II         '/         1!      1 

43000 

30      ti        If        "      1 

24000 

31      •/        //        "      1 

12000 

•          //             If             u         1 

28 

120028 

243 


INSTALMENT  LIST. 


INSTALMENT  No.  3. 

Subsciibers  to  the  Capital  Stock  of  the  City  National  Bank.  Fifty  Dollars  per  share 
due  January  10th,  1867.  Agreeably  to  resolution  of  the  Board  of  Directors,  passed 
December  31st,  1866. 


Whex  Due. 


When  Rec'd. 


1867. 

Jan. 


SCBSCRIBEHS'   NAMES. 


John  Ward,  . 
James  Harper 
Jas.  W.  Cox, 
J.  C.  Baker, 
W.  H.Duff,  . 
Wm.  Hay,  .     .     . 
Barclay,  Hope  &  Co. 
Harriet  Lenox,     . 
Bobert  Lenox, 
Wm.  B.  Archer, 
R.  C.  Root,    . 
P.  Duff, .     .     . 
Wm.  Draper, 
Jas.  R.  Compton, 
Samuel  Warren, 
Robert  Banks, 
Riehard  Irvin  &  Co., 
Thomas  Mitchell, 
Thomas  B.  Smith, 
Wm.  Major,     .     . 


Jan.  9  Ent'd  Cash  Book  1 
10       //         w  7       1 


Shares. 


500 
600 
100 
100 
100 
200 
300 
50 
100 
2000 
100 
100 
20 
30 
100 
600 
100 
500 
100 
300 


6000 


Instalment. 


25000 

30000 
5000 
5000 
5000 

100.00 

15000 
2500 
5000 
100000 
5000 
5000 
1000 
1500 
5000 

30000 
5000 

25000 
5000 

15000 


300000 


102500 
197500 


300000 


Int. 


Amount  Rec**« 


25000 

30000 
5000 
5000 
5000 

10000 

15000 
2500 
5000 
100000 
5000 
5000 
1000 
1500 
5000 

30000 
5000 

25000 
5000 

15000 


300000 


244 


R 


i^? 


*!.i 


5    §:    ?< 


H's^'-^tsj  Ml*i( 
?;^U«  lE>a         mi) 


1^ 

^3 


^ 


€£> 


245 


5 
I 


o  Q 

i  ^ 

§•©■ 


r 

^X£)@ 

e-..^^^ 

^^ 

8  ^fe*              <' 
1 

1    i 

q:      SS     H     j5^ 

i    1 
^   1 

^       V   =J       1 

2 

V      >^ 

246 


CITY  NATIONAL  BANK, 
GENERAL    CASH-BOOK, 

1867. 


1.  All  receipts  and  payments  preceding  the  commencement  of  general  business  are  first 
recorded  in  this  book.  Afterwards  it  is  made  up  from  the  Receiving  and  Paying  Tellers' 
Cash  Books.  In  a  large  business  it  ought  to  be  journalized  and  balanced  daily,  and  its 
balance  must  agree  with  the  balance  of  money  in  the  vault,  and  in  the  Tellers'  hands,  con- 
sisting of 

Notes  of  other  Banks, 

Checks  on  other  Banks, 

Treasury  Notes, 

Specie,  and 

Our  own  Notes  in  hand,  used  as  money. 

2.  In  our  Private  Banker's  accounts,  we  shall  exhibit  this  book  posted  direct  to  the 
General  Ledger,  which  may  be  done  in  any  banking  business.  But  we  think  the  Journax 
will  make  this  set  more  easily  understood  by  the  student.  When  it  is  to  be  posted  direct 
to  the  Ledger,  the  form  of  our  Private  Banker's  book  is  preferable.     See  p.  352. 


247 


t    Dr. 


C^SH 


1806. 

Dec. 

1 

Capital  Stock                            Received  on  First  Instalment 

9000 

5 

//           II                                     II                 II             1' 

36000 

6 

II           II                                      n                 II             II 

3000 

9 

II           II                                      II                 II             II 

6000 

10 

It                 II                                                              H                           II                     II 

67500 

15 

II           II                                       II                 II             II 

43500 

18 

■     II           II                                       II                 II             II 

15000 

Discount  and  Interest                     //         on  past  due  Instalments 

10 

50 

19 

Capital  Stock                                   n              Second  Instalment 

22000 

21 

//           //                                       //                    //              // 

8000 

25 

II                II                                                           H                             II                      II 

5000 

.27 

II                 II                                                              II                               II                       li 

6000 

28 

II           II                                        II                    II               II 

43000 

30 

II          II                                   tt                 II             It 

24000 

31 

II          II                                   II                 II             II 

12000 

1867. 

Discount  and  Interest                    n         on  past  due  Instalments 

28 

Jan. 

9 

Capital  Stock                                   //              Third  Instalment 

102500 

10 

//           //                                      '/                  II             II 

197500 

600038 

50 

Balance  bro't  down 

399238 

50 

Jan. 

10 

Depositors                                 Per  Receiving  Teller's  C.  B. 
Iron  City  National  Bank           u            n                n 
1st  National  Bank,  Chicago      //           "                " 
1st  Nat.  Bank  New  Orleans    //            "                " 
Circulation                                 ii           *                // 

12300 

1000 

1500 

500 

160000 

574538 

50 

Balance  bro't  down 

218471 

84 

Feb. 

15 

Circulation                                Per  Receiving  Teller's  C.  B. 
Bills  discounted                         **           //               // 
Depositors                                    //            //                n 
Exchange                                   //           n               n 

232000 

7900 

21164 

136 

479671 

84 

Balance  bro't  down 

353071 

84 

Mar. 

16  1 

Circulation                               Per  Receiving  Teller's  C.  B. 

88000 

1 

Bills  Discounted                          n            ti                n 

18600  1 

Depositors                                  "            "               " 

6800  1 

1st  Nat.  Bank,  New  Orleans    //            u               n 

1200 

1st  Nat.  Bank,  Chicago             //            '/               " 

1600 

Iron  City  Nat.  Bank                 n           n               " 

1200  1 

470471 

84 

248 


A.CCOXJ]SrT. 


Cr     1 


Dec. 


1867. 

Jan. 


Jan. 


Feb. 


Mar. 


5 

2 

3 

10 

10 
15 
16 

Expense                                    P'd  Root,  Anthony  &  Co.,  for  Sta- 
tionery 
//                                           P'd  Times  &  Tribune,  Advertising 
United  States  Bonds                 //    for  200  5/20  Bonds  of  $1000 

each 
Bank  Furniture                       P'd  Ashley  &  Son's  bill 

Balance  to  n/a 

150 
50 

:  200000 

600 

399238 

50 

600038 

50 

Depositors                                 Per  Paying  Teller's  C.  B. 
1st  Nat.  Bank,  Chicago             //         n             n 
1st    tf         11       New  Orleans     n         i>              n 
Foreign  Bills  of  Exchange       //         //             // 
Exchange                                   v         ti             n 
United  States  Bonds                  //        //             // 

Balance  to  n/a 

7900 
500 

1000 
44444 

2222 
300000 
218471 

44 
22 

84 

574538 

50 

Depositors                                 Per  Paying  Teller's  C.  B. 
United  States  Bonds                  tt         n             n 
Iron  City  Nat.  Bank                 //         //             // 
1st  Nat.  Bank,  Chicago             n         n             n 
1st  Nat.  Bank,  New  Orleans     //         n             // 
Exchange                                   //         u            n 

Balance  to  n/a 

18600 

100000 

3564 

792 

3528 

116 

353071 

84 

479671 

84 

Depositors                                 Per  Paying  Teller's  C.  B. 
1st  Nat.  Bank,  Chicago             u         if             ii 
1st  Nat.  Bank  J  New  Orleans    //         f             u     - 
Iron  City  Nat.  Bank                 //         //             // 
Foreign  Bills  of  Exchange        //         v             // 
Exchange          ^                         u        »             n 

Balance  carried  forward 

10300 

1188 
2352 
1782 

22222 
1189 

431438 

22 
11 
51 

470471 

84 

249 


3    Dr. 


O^SH 


1867. 


Apr. 


15 


May 


14 


.Tune 


Bills  Discounted 

Depositors 

1st  Nat.  Bank,  New  Orleans 

Iron  City  Nat.  Bank 

1st  Nat.  Bank,  Chicago 

Baring  Bros.  &  Co. 

Excliano-e 


I  Depositors 

I  Discount  and  Interest 
j  Baring  Bros.  &  Co. 
i  Exchange 
I  Iron  City  Nat.  Bank 
Bills  Discounted 
1 1st  Nat.  Bank,  Chicago 
1 1st  Nat.  Bank,  Boston 


12 


Depositors 
Baring  Bros.  &  Co. 
Exchange 
Profit  and  Loss 
Discount  and  Interest 


Bal.  bro't  forward 

Per  Receiving  Teller's  C.  B. 


II  II  II 

II  II  II 

II  II  II 

II  II  II 

Certified  Check  unpaid 


Balance  bro't  down 

Per  Eeceiving  Teller's  C.  B. 


II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

It 

Balance  bro't  down 

Per. Receiving?  Teller's  C.  B. 


Balance  bro't  down 


431438  !  51 

7200  j 
51100  I 

8000  i 

2000  I 

4000  I 
26666 

2666 

ROD 


533871  I  85 


500606 

12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 


590502 


576799 
18984 
20003 
2116  I 
2000  I 
204  I  94 


620107 


603847 


250 


^CCOTJjSTT 


cb.  a 


1867. 

Apr. 

15 

Circulation 

Per  Paying  Teller's  C.  B. 

500 

Foreign  Bills  of  Exchange 

//         II             II 

20000 

Exchange 

II         II             II 

1290 

Depositors 

II               II                      7 

8500 

Expense 

.'/               //                      // 

2975 

Balance  to  n/a 

500G0G 

t 

85 

Certified  Check  out* 

533871 

85 

800 

May 

14 

Depositors 

Per  Paying  Teller's  C.  B. 

4903 

75 

Iron  City  Nat.  Bank 

//         11             II 

1980 

Bank  of  Montreal 

II         II             II 

3564 

1st  Nat.  Bank,  Boston 

II         II             II 

2394 

Exchanjire 

II         II             II 

62 

o 

Balance  to  n/a 

57G799 

10 

12 

Per  Paying  Teller's  C.  B. 

590502 

85 

.Tune 

1  Depositors 

8300 

Iron  City  Nat.  Bank 

//  •       //             // 

2772 

1st  Nat.  Bank,  Chicago 

1!                 II                         II 

2970 

1 

1 

Foreign  Bills  of  Exchange 

II                 II                         II 

2000 

1 

'  Kxchanp;e 

II                 II                         It 

218 

1 

Balance  to  n/a 

603847 

54 

620107 

54 

*  Checks  are  certified  with  the  understanding  that  they  are  to  he  immediately  paid 

into  another  bank,  which  will  present  them  promptly  for  payment.    If  the  holder 

uses  his  check  for  a  distant  remittance,  if  unpaid  at  the  time  of  balancing  this  book 

it  must  be  re-entered,  as  in  this  case. 

• 

251 


FOKM  OF  A  POWER  OF  ATTORNEY  TO  TRANSFER  STOCK. 

S^t  ^eIeiD  fexriMb /^^e^  ccndMi/e  €z^{/ a/f^om^  lUewca/Zu 

'./tue  ana  /a4i^/  a^^oHtef/.    /oi . 


ana  m     ftame   /o  /ian(i/H  ^. 


fiMiaied  in  me  %a/uYa/  tj/ocn  o/  me 

CITY  HATiaHA^Li  BAMK  OF  HB^fclir  ITOKK. 


QSif nC00 /ian(/ an{/ dea/ did c/a/^  c/.. /^. 


I'MeM  /iieden/.  f  seal. 


LETTER  OF  AUTHORITY  TO  SIGN  BUSINESS  PAPER. 

New  York,  June  30,  18G7. 
Sir  : — I  have  to-day  authorized  my  Book-keeper,  Mr.  F.  L.  Rainbow,  to  sign  my  name 
to  Promissory  Notes,  Cheeks,  and  Drafts ;  also,  in  like  manner,  to  use  my  signature  in 
accepting  Orders,  Drafts,  and  Bills  of  Exchange;  also,  in  endorsing  Promissory  Notes, 
Checks,  Drafts,  and  Bills  of  Exchange. 

Very  respectfully,  yours, 

W.  B.  ARCHER. 
To  the  Cashier  City  National  Bank, ") 
New  York,  j 

The  abova  authority  must,  in  every  case,  be  strictly  observed  in  form  and  extent,  other- 
wise the  validity  of  the  act  may  be  endangered. 


252 


JOURNAL, 

CITY   NATIONAL   BANK, 

JANUARY,  1867. 


Althougli  banks  do  not  generally  keep  this  book,  we  retain  it  to  enable  tlie  uninitiated 
to  understand  more  readily  the  process  of  arranging  the  contents  of  so  many  books  for  the 
General  Ledger.  When  this  book  is  kept,  the  General  Ledger  receives  no  entries  from 
any  other  book. 


253 


NEW  YORK,  December  31, 1866. 


1 
1 

1 

1 
2 

1  ! 

2  i 
4! 
4 
4 

1 
2 

4 
4 
2 
3 

2 
2 
3 
3 

1 
3 

1 
1 

4 
2 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Capital  Stock 
//   Discount  &  Interest 


Expense,  Dr.,      .... 
To  Cash,  per  Gen'l.  C.  B.  1       . 

=  Jan.  10, 1867. 

Cash,  Dr.,  per  Gen'l.  C.  B.  1 
To  Capital  Stock      . 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  1 

United  States  Bonds 

Bank  Furniture 

_  f,  


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 

To  Depositors 

//    Iron  City  Nat.  Bank    . 
//   First  Nat.  Bank,  Chicago 
//   First  Nat.  Bank,  New  Orleans 
w ~ 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.   1 
Depositors        .         .  .         . 

First  Nat.  Bank,  Chicago 
First  Nat.  Bank,  New  Orleans 
Foreign  Bills  of  Exchanjre  . 


Exchange 


Bills  Discounted,  Dr.  To  Sundries,  D.  B.  1 
To  Depositors  ...  .         . 

II   Discount  &  Interest 

II   Exchange  .         .         .         .  . 


Cash,  Dr.,  per  Gen'l.  C.  B.  1 
To  Circulation 

// 

United  States  Bonds,  Dr. 
To  Cash,  per  Gen'l.  C.  B.  1 
=-      12. 


Baring  Brothers  &  Co.,  Dr.  . 

To  Foreign  Bills  of  Exchange  for  Brown  Brothers  <fe 

Co.,  on  G.  Peabody       .         .  £10000  St'g. 

===========  Feb.  15.  — ==^.==^= 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Circulation 

//   Bills  Discounted 

II   Depositors 


//   Exchange  . 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B.  1 

Depositors 

U.  S.  Bonds 

Iron  City  Nat.  Bank 
First  Nat.  Bank,  Chicago 
First  Nat.  Bank,  New  Orleans  . 

Exchange 

254 


300038 


200 


300000 


200000 
600 

15300 


7900 

500 

1000 

44444 

2222 

12100 


160000 

300000 

44444 

201200 


18600 

100000 

3564 

792 

3528 

116 


50 


44 

99 


44 


300000 
38  50 


200 

300000 
200600 


12300 

1000 

1500 

500 

56060  6b 


11958  87 
89  13 
52 


16000U 

300000 

44444 


232000 

7900 

21164 

136 

126600 


44 


February  15,  1867. 


Bills  Discounted,  Dr.  To  Sundries,  per  D.  B.  1 

To  Depositors 

II   Discount  &  Interest     .... 


//   Exchange 


March  16. 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  1 
To  Circulation     ..... 

Bills  Discounted 

Depositors 


First  Nat.  Bank,  New  Orleans 
First  Nat.  Bank,  Chicago 
Iron  City  Nat.  Bank    . 


Sundries,  Dr.  To  Cash,  per  Gen'] 
Depositors        .... 
First  Nat.  Bank,  Chicago      . 
First  Nat.  Bank,  New  Orleans  . 
Iron  City  Nat.  Bank     . 
Foreign  Bills  of  Exchange 
Exchansre     .... 


B.  1 


Bills  Discounted,  Dr.  To  Sundries,  per  D.  B.  1 
To  Depositors      ...... 

//   Discount  &  Interest     .... 


Baring  Bros.  &  Co.,  Dr 

To  Foreign  Bills  of  Exchange,  for  Pollock  &  Gilmore, 
on  B.  Rankin  &  Co.      .    "    .         .  £5000  St'g. 

-^^  ^=   April  15. 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Bills  Discounted 

Depositors       .... 

First  Nat.  Bank,  New  Orleans 

First  Nat.  Bank,  Chicago 

Iron  City  Nat.  Bank    . 


Baring  Bros.  &  Co. 
Exchange 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C. 
Circulation       .... 
Foreign  Bills  of  Exchange  . 
Exchange         .... 

Depositors 

Expense 

II  


B.  2 


Bills  Discounted,  Dr.  To  Sundries,  D 
To  Depositors 
//    Discount  &  Interest 
II    Exchange  .... 


B.  1 


Baring  Brothers  and  Co.,  Dr. 
To  Foreign  Bills  of  Exchange,  for  Betts  &  Tui 
Bold&Starkey     .         .         . 


ner,  on 


£4500  St'g. 


14400 

14267 
06 
66 

117400 

i 

88000 
18600 
6800 
1200 
1600 
1200 

39033 

10300 

1188 

1 

2352 

1782 

22222 

22 

1189 

11 

7200 

7164 
36 

22222 

i 

22 

22222 

101633 

34 

! 

!    - 

7200 

5iioa 

8000 
4000 
2000 
26666 
2666 

33265 

500 

20000 

1290 

8500 

2975 

7300 

7253 
34 
12 

20000 

1 

20000 

60 
40 


33 


OO 


67 

67 


12 

88 


255 


May  14,  1867. 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Depositors      ..... 
//    Discount  &  Interest     . 
//    Baring  Bros.  &  Co. 
//    Exchange  .  ... 

//    Iron  City  Bank       .... 
//    Bills  Discounted 
//    First  Nat.  Bank,  Chicago 
II    First  Nat.  Bank,  Boston 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C.  B. 

Depositors        ..... 

Iron  City  Nat.  Bank     . 

Bank  of  Montreal    . 

First  Nat.  Bank,  Boston        .         .         . 


Exchange 


Bills  Discounted,  Dr.  To  Sundries,  per  D. 
To  Depositors  .... 

M    Discount  &  Interest 


B. 


//    Exchange 


June  12. 


Baring  Brothers  &  Co.,  Dr.  . 
To  Foreign  Bills  of  Exchange,  for  Dyer 
Swainson  &  Willis 


Cash,  Dr.  To  Sundries,  per  Gen'l.  C.  B.  2 
To  Depositors  .... 

//    Baring  Brothers  &  Co.     . 

//    Exchange  .... 

//    Profit  &  Loss  .         . 

*    Discount  &  Interest     . 


Sundries,  Dr.  To  Cash,  per  Gen'l.  C. 
Depositors        .         .         .         .' 
Iron  City  Nat.  Bank     . 
First  Nat.  Bank,  Chicago 
Foreign  Bills  of  Exchange  . 
Exchano;e         .         .         . 


Bills  Discounted,  Dr.  T(3  Sundries,  D.  B.  2 
To  Depositors  .... 

//    Discount  &  Interest 

//    Exchange  .... 


B.  2 


Morgan,  on 
£450  St'g. 


89896 


4903 
1980 
3564 
2394 
62 

6200 


2000 


43308 


75 


44 


12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 

12903 


75 


6002  30 

87  70 
50 


2000 


8300 
2772 
2970 
2000 
218 

9200 


18984 

20003 

2116 

2000 

204 

10260 


9014 
167 

18 


50 


94 


256 


STOCK    LEDGER, 

CITY    NATIONAL   BANK, 

1867. 


1.  This  book  records  nothing  but  the  number  of  Shares  of  the  Capital  Stock  of  the 
Company  held  by  each  shareholder,  and  the  instalments  that  he  has  paid  upon  them.  The 
entries  are  first  obtained  from  the  Instalment  List.  When  transfers  afterwards  take  place, 
they  are  posted  to  this  Ledger  from  the  Transfer  Book. 

2.  The  aggregate  credits  of  this  Ledger  must  always  agree  with  the  credit  of  the 
'•  Capital  Stock"  account  in  the  General  Ledger. 

3.  Keeping  these  accounts  in  alphabetical  order  enables  us  more  easily  to  keep  them  so 
on  the  Dividend  List. 

R  257 


Dr. 


WM.  B. 


ARCHER. 


Shs. 

-,      18C6. 

1 
1 

Dec. 

1867. 

Jan. 

10 
28 
10 

1st  Instalment 
2d         II 
3d         II 


Shs. 
2000 


Cr. 


60000 

40000 

100000 


J.  C. 


BAKER. 


1866. 

Dec. 

5 

- 

1867. 

21 

Jan. 

9 

BARCLAY, 


lL?i  Instalment 
2d         // 
3d         // 


100 


3000 
2000 
5000 


HOPE  &  CO. 


1866. 

Dec. 

1867. 

Jan. 


1  j  1st  Instalment 
27    2d  II 

9  1  3d  » 


300 


9000 

6000 

15000 


1«?67. 

Mar.    16 


ROBT. 


J.  w. 


J.  R. 


BANKS. 


Dec. 

1867. 

Jan. 


15  !  1st  Instalment 
31    2d  // 

10  3d    // 


600 


18000 
12000 
30000 


OCX. 


i 

1866. 

Dec. 

1867. 

i    5 
jl9 

1st  Instalment 
2d          // 

100 

3000 
2000 

Jan. 

!    9 

3d          // 

5000 

COMPTON. 


O.  R.  Duncan 


■  1 

\    1866. 

10 

1000 

Dec. 

1867. 

Jan. 

l' 

15 
28 
10 

1st  Instalment 
2d  // 

3d  // 


30 


900 

600 

1500 


WILLIAM 


Apr.  :  15    G.  R.  Duncan 

i 


20 


2000 


2000 


DRAPER. 


Dec. 

1867. 

Jan. 


15  !  1st  Instalment 
28    2d  '/ 

10    3d  '/ 


600 

400 

1000 

2000, 


GEO.  R. 


DUNCAN. 


1867. 
Mar. 
Apr. 


16  I  J.  R.  Compton 
15  I  Wm.  Draper 


10  ji     1000  i 
20 1      2000 


258 


1>R 


DUFF. 


Cr.      2 


i      I 


1866.    I        I 

Dec.     15    1st  Instalment 
28    2d  II 


1867. 

Jan. 


10 


3d 


100 


3000 
2000 
5000 


WJtt.  H. 


DUFF. 


1     1866. 

1  Dec. 

6 

i 

j 

1867. 

21 
9 

6  I  1st  Instalment 
2d  // 

3d  II 


100 


3000 
2000 
6000 


JAMES 


HARPER. 


1866. 

i 

Dec. 

5 

1st  Instalment 

SOOji 

18 

1st         // 

ioo|; 

19 

2d          // 

11 

1867. 

30 

2d          II 

Jan, 

9 

3d          '/ 

15000 
3000 

10000 
2000 

30000 


WM. 


HAY. 


1 

1866. 

Dec. 

9 

1867. 

21 

i 
1 

.! 

Jan. ' 

9 

1st  Instalment 
2d  // 

3d  '/ 


200 


6000! 
40001 

10000 


RICHARD 


IRVIN  &  CO. 


Dec.     15    1st  Instalment 


1867.      30 
Jan.     10 


2d 
3d 


100 


3000 
2000 
5000 


HARRIET 


!   i 


LENOX. 


i 

i     1868. 

1   Dec. 

10 

i 

i     1867. 

25 

1 

Jan. 

1 

9 

1st  Instalment 
2d  II 

3d  II 


50! 


1500 
1000 
2500 


ROBERT 


LENOX. 


"" 

ii 

"  1 

1866. 

li 

Dec. 

10 

1st  Instalment 

100 

3000 

-i!     - 

■  ■  i 

1867t 

25 

2d          II 

20001 

!-i 

■ 

1 

i 

Jan. 

9 

3d          '/ 

5000 

1  ■ 

259 


ti      Dr 


THOS. 


MITCHELL. 


Or. 


1866. 

Dec. 

1867. 
•Tan. 

15 

30 
10 

1st  Instalment 
2d         // 
3d  // 


Sha. 

1 

500 

15000 

10000 

25000 

WM. 


MAJOR. 


I 

i 

i 

1 

1866. 

Dec. 

1867. 

Jan. 

18 
30 
10 

1st  Instalment 
2d         // 
3d          '/ 

300 

9000 

6000 

15000 

R.  C. 


Dec. 

1867. 

Jan. 


ROOT. 


10    1st  Instalment 
251  2d  // 

10    3d  // 


100 


3000 
2000 
5000 


T.  B. 


JOHN 


SMITH. 


1866. 

Dec. 

1867. 

Jan. 

18 
30 
10 

1st  Instalment 
2d          If 
3d          tf 

100 

3000 
2000 
6000 

WARD. 


i     1866. 

1 

!   Dec. 

5 

1867. 

19; 

Jan. 

9l 

1st  Instalment 
2d  " 


500 


15000 
10000 
25000 


SAMUEL 

WARREN. 

1 

1 

im 
Dec. 

1867. 

Jan. 

i 

! 

1 

15 
30 
10 

1st  Instalment 
2d          // 
3d          It 

100 

3000 
2000 
5000 

260 


EECEIVING  TELLER'S  CASH  BOOK, 

CITY  NATIONAL  BANK, 
JANUARY,  1867. 


Upon  the  left  page  are  entered  all  amounts  for  the  General  Ledger  3  upon  the  right 
page,  all  amounts  for  the  Depositors'  Ledger,  into  which  each  Deposit  is  posted  as  indicated 
by  the  post-marks.  We  have  passed  the  amounts  of  both  sides  into  the  General  Cash  Book. 
By  comparing  this  book  with  the  General  Ledger,  the  titles  'of  the  accounts  will  be  found 
so  distinctly  arranged  upon  it  as  to  admit  of  direct  posting  without  a  Journal  or  General 
Cash  Book. 


261 


RECEIPTS  FOR  GENERAL  LEDGER.    New  York, 


Iron  City  Nat.  Bank.  Eec'd  Check  on  1st  Nat.  Bk.,  N.Y 

let  Nat.  Bk.,  Chicago.  //      Draft  on  9th  Nat.  Bk.,  N.Y, 

1st  Nat.  Bk.,  New  Orleans,     //      Draft  on  Chemical  Nat.  Bk. 


Circulation, 
I  Circulation, 


w      of  U.  S.  Comptroller,  per  B.  N.  K.  1 
II  II         II 


G.  C.  B.  1 


1000 

1500 

500 

80000 

80000 


163000 


February 


I  Bills  Discounted, 


Circulation, 


Exchange, 


Kec'd  Gregg  &  Hall,  No.  1 
Mount,  Joy  &  Co.  2 
G.W.Leeds,  3 

Hay  &  Wood,  4 

Bateman  &  Hill,     6 


2000 
1000 
1800 
1600 
1500 


II      of  U.  S.  Comptroller,  B.  N.  K.  1        200000 
//  //  //         II  32000 

It      for  sundry  exchanges. 


7900 


232000 


136 


240036 


•  When  posted  direct  to  the  General  Ledger,  Insert  the  pages  In  this  column. 


262 


January  10,  1867.     FOR  DEPOSIT  LEDGER. 


1  R.  Trvin  &  Co. 

1  E.  Lenox 

1  R.  C.  Root,  Anthony  &  Co. 

2  John  Ward 


2    Harriet  Lenox 

2  Harper  &  Bros. 

1 

3  '  Barclay,  Hope  &  Co. 
3    Duff  Brothers  &  Co. 


!l 


Dep'd  Smith  on  Chemical  Bk. 

Draft  on  O.  If.  Bliss,  Chicago 
Bank  Notes 

II       Bank  Notes 


3  J.  Carver 

4  Ryan  &  Dale 


Cluley  on  9th  Nat.  Bk. 
Bank  Notes 


'-       Bank  Notes 

Moore  on  1st  Nat.  Bank 
Lawson  on  4th  Nat.  Bank 

♦/       Bank  Notes 

//       Draft  on  F.  J.  Herron,  New  Orleans 
Bank  Notes 

"       Bank  Notes 

II      Coin 

Robb  on  3d  Nat.  Bk. 

//      Bank  Notes 
//  It         II 

G.  C.  B.  1 


200 
600 
800 


600 
1000 


1000 
400 
400 


1000 
1000 


500 
500 


i 

1500 

1 

1200 

1600  1 

1800 

1   i 

'      1000 

2000 

i 

800  ' 

1000 

600 

800 

12300 

15,  1867. 


R.  C.  Root,  Anthony  &  Co. 
R.  Irvin  <&  Co. 


R.  Lenox 
Duff  Bros.  &  Co. 
A.  B.  Hunter 
Harper  &  Brothers 
Ryan  &  Dale 


2    Harper  &  Bros. 
1    R.  Irvin  &  Co. 


3  Barclay,  Hope  &  Co. 

1  R.  Irvin  &  Co. 

3  Jas.  Carver 

4  Lyon  &  Haven 


Dep'd  Bank  Notes 

n  Brown  on  1st  Nat.  Bk. 

.  Bank  Notes 
II  II  II 

II  II  II 

II  II  II 

II  It  If 

II      Coll.  on  Bates  &  Bell,  Pittsburgh 
Less  Exchange 

Coll.  on  W.  S.  Hunter,  Chicago 
Less  Exchange 

Coll.  on  J.  Kane,  New  Orleans 

Less  Exchange 

Coll.  Baker  &  Fox,  City 

//     Joel  Post,  // 

'/     R.  S.  Davis,       n 

It     J.  B.  Marks,      u 

G.  C.  B.  1 


1100 
700 


3600 

800 
.  16 


1600 
48 


900 
1800 


1400 
1000 
400 
2500 
3528 


(84 


1552 


1600 

2400  . 

1200  i 

2100 

1 

21164 

:       1 
i 

1 

263 


RECEIPTS  FOR  GENERAL  LEDGER. 


Marcj 


Bills  Discounted 


1st  Nat.  Bk.,  New  Orleans 
1st  Nat.  Bk.,  Chicago 
Iron  Citjr  Nat.  Bk. 
Circulation 


Kec'd  Patterson  &  Wild,  No.  5 

J.  W.  Loring  7 

W.  Page  8 

Hay  &  Wood  9 

K.  Bruce  10 

Hunter  &  Co.  11 

J.  Morton  12 

J.  Carver  13 


Draft  on  Kyan  &  Dale 

Draft  on  B.  C.  Eoot,  Anthony  &  Co. 

Draft  on  Harper  &  Bros. 


of  U.  S 
n 
If 
ft 
II 

G.  C.  B.  1 


Comptroller,  B.  N.  E.  1 
//  // 


1200 

3000 

3600 

i  2400 

i  1800 

i  3300 

i  1200 

2100 

40000 
li  20000 
11  10000 
,1  10000 
I   8000 

1 

18600  : 

1200 

1600 

1200 

i  88000 

110600 

April 


Bills  Discounted 


1st  Nat.  Bk.,  New  Orleans 
Iron  City  Nat.  Bank 
Baring  Bros.  &  Co. 

Ist  Nat.  Bk.,  Chicago 
Exchange 


Eec'd  Day  &  Martin,  No.  14 

Hart  &  Bowman,  15 

Duncan,  Dunlap  &  Co.,         16 

Geo.  Wilde,  17 

If      our  Draft  No.  1,  favor  W.  B.  Morgan 

//  II  II    2,   //  Kramer  &  Kahm 

u  II  Bill  It    1,  at  60  days'  sight 

favor  E.  Banks  &  Co.    £6000  St'g 
II      J.  Astley  &  Co. 
//      10  %  prem.  for  our  Bill  No.  1 


G.  C.  B.  2 


1500 
il  2400 
!   900 

il  2400 

7200 

! 
i 

! 

8000 
2000 

26666 
4000 
2666 

50533 

67 
67 

34 

264 


16,  1867. 


FOR  DEPOSIT  LEDGER. 


2 


12  I  John  Ward 


Dep'd  S.  Hill  on  Union  Bk. 
Bank  Notes 


Harriet  Lenox 
Barclay,  Hope  &  Co. 
A.  B.  Hunter 
J.  W.  Burnham 


//         // 
Jas.  Wood  on  1st  Nat  Bk. 


G.  C.  B.  1 


800 
;      700 

! 

1 

700 
900 

! 

1 

> 
■ 

1 

1500 

1200 
1400 
1100 
1600 

i 

6800 

15,  1867. 


1    B.  Lenox 


Dep'd  Bank  Notes 

Hill  on  9th  Nat.  Bk. 


]    B.  C.  Boot,  Anthony  &  Co. 


John  Ward 
Harriet  Lenox 
Harper  &  Brothers 
Duflf  Bros.  &  Co. 
J.  Carver 
W.  B.  Archer 
Lyon  &  Haven 
Boy,  Wade  &  Co. 
J.  W.  Burnham 
B.  P.  DufF 
H.  P.  Ford 


*  See  Form,  p.  274. 


1/ 

Bank  Notes 

II 

Mackey  on  Chemical  Bk 

II 

Bank  Notes 

II 

n 

II 

If 

II 

II 

11 

II 

II 

II 

II 

II 

II 

II 

II 

It 

II 

II 

II 

II 

II 

II 

II 

II 

Certificate  of  Deposit  No.  1* 
fr  It  II  2 

G.  C.  B.  2 


3000 

1000 

'      2000 

5000 

3600 

1     1400 

— 

2500 

1800 

5700 

6500 

2100 

10000 

4350 

. 

3700 
1950 
2100 
2400 

51100 

265 


3 


RECEIPTS  FOR  GENERAL  LEDGER. 


May 


Discount  &  Interest 
Baring  Bros.  &  Co. 

Iron  City  Nat.  Bank 
Bills  Discounted 


Ist  Nat.  Bk.,  Chicago 


1st  Nat.  Bk.,  Boston 
Exchange 


Rec'd  for  May  Coupons  /^  bonds 
//       //   Bill  No.  2  @  60  days  s'gt  in 


favor  of  C.  Bell,  £9000  St^ 
protest  on  A.  J.  Turner,  No.  8,  ret' 

'/       J.  Barker  &  Co.,  No.  18 
S.  Lewis  &  Co.,  20 

J.  W.  Bliss  21 


If       Baker  &  Hill 

Porter  &  Dick 

W.  G.  Bay 
'/       Draft  on  Chemical  Bank 

II       10  fo  prem.  on  Bill  Nc.  2 
sundry  exchanges 


! 


G.  C.  B.  2 


1 

! 

2400 
j  1500 

11  ISOO 

1 

8600 
2100 
1200 

! 

18000 
40000 

2  : 

5700 

6900  ' 

2394  ' 
4112  , 

t 

1  77108 

1  • 

4000 
112 

! 

1 

I. 

! 

June 


Baring  Bros.  &  Co., 


Profit  &  Loss 
Discount  &  Interest 
Exchange 


Rec'd  of  Stacy  &  Evans  for  No.  3  ret'd 
do 

do 
do 


'/      for  protest  on 
'/      10  fo  damages  on 


Interest  on 

If      10%  premium  on 
sundry  exchanges 


G.  C.  B.  2 


20000 
3  50 


20003 


50 


2000 
204    94 
2116 


24324    44 


i:g6 


14,  1867. 


FOR  DEPOSIT  LEDGER. 


^ 


1    R.  C.  Eoot,  Anthony  &  Co. 


,  3  !  Duff  Brothers  &  Co. 


2    Harriet  Lenox 
6    G.  R.  Duncan 
1    E.  Irvin&Co. 


Harper  &  Bros. 
1    E.  Lenox 


Dep'd  Bank  Notes 
Coin 

Dep'd  Bank  Notes 
Coin 

K  II 

Certificate  of  Deposit  No.  3 

Coll.  E.  Glass  &  Co.,  Pittsburgh 
Less  Exchange 

Coll.  W.  Pajson,  Pittsburgh 
Less  Exchange 

Coll.  G.  Wilde  &  Co.,  Montreal 
//    J.  Carter,  // 

Less  Exchange 

G.  C.  B.  2 


2400 
1200 


1400 
1  1600 

i  1100 
l__900 

800 
16 

i   1200 

1    24 

— 

3000 

2000 

1100  ' 
1200 

,   784 

1176 

1 

3528 

i   •  ■ 

1          ! 

!  3600 

1    72 

i: 

♦ 

12788 

1 

12,  1867. 


4  Lyon  &  Haven 

5  A.  B.  Hunter 

3    Duff  Bros,  k  Co. 


2    Harriet  Lenox 

1    E.  C.  Eoot,  Anthony  &  Co. 


Dep'd  Coin 

Bank  Notes 


1    E.  Lenox 


4    W.B.Archer 


I  4    Lyon  &  Haven 


II      Brown  on  4th  Nat.  Bk. 
Coin 

//       Coin 

Jones  on  W^inslow,  Lanier  &  Co. 

II       Bank  Notes 


Coll.  J.  L.  Dixon 
//     Day  &  Martin 

Coll.  W.  Burton 
J  as.  Carver 

Coll.  C.  H.  Ball,  Pittsburgh,     800 
//      J.  Home,         II  2000 

Less  Exchange 

Coll.  W.  Baker,  Chicago 
Less  Exchange* 

G.  C.  B.  2 


j 

700 
'   600 

1  1300 

Ii 

!   900 
1   300 

' 

1200 
'  2100 

w 

,;  1200 
ii   900 

1 , 

1800 
2700 

1   1600 
i   1100 

2400 
1800 

■ 

4200 
2744  i 

2800 
56 

\\      3000 

;   60 

i! 
ii 

!l 

il 

-  : 

2940 

189S4 

! 

1   ■ 
i 

267 


REGISTER  OP  SIGNATURES. 


Date. 
1867. 


Name. 


Jan. 


A. 


10    W  B.Archer 


B. 


Jan.   10    Barclay,  Hope  &  Co.,  by  A.  C.  Barclay 
Mar.  16    J.  W.  Burnliam 


€. 


Jan.    10    'James  Carver 


I>. 


Jan.   10     Duff  Brothers  &  Co.,  by  Wm.  H.  Duff 
Duff  Brothers  &  Co.,  //   T.  C.  Duff  . 
I  Duff  Brothers  &  Co.,  //   E.  P.  Duff     . 


a. 

Jan.   10     Harper  &  Brothers,  by  John  Harper 
Harper  &  Brothers,  //    James  Harper 

I. 

Jan.   io  I! Richard  Irvin  &  Co.,  by  R.  Irvin 


Jan    b 


Jan.    10 


Feb. 


Jan. 


Lyon  &  Haven,  by  "VVm.  M.  Lyon 
Lyon  &  Haven,  //    J.  W.  Haven  , 

Robert  Lenox 

Harriet  Lenox 


15 


10 


R.  C.  Root,  Anthony  &  Co.,  by  R.  C.  Root  . 
R.  C.  Root,  Anthony  &  Co.,  //   J.  Anthony,  Jr. 
R.  C.  Root,  Anthony  &  Co.,  //    A.  S.  Allison   . 
Ryan  &  Dale,  /'   W.  L.  Ryan  . 

Roy,  Wade  &  Co.,  //   J.  C.  Roy  .     . 


W. 


John  Ward 


City 


City 


Place  of  Business. 

Witness. 

City 

J.  J.  Jones,* 

City 
u 

City 

City 
// 

„ 

• 

City 
i           ff 

City 

City 
1           tf 

*  In  this  book  the  Bank  ought  to  have  registered,  in  alphabetical  order,  the  signatures  of  all  per- 
sons keeping  accounts  with  it;  and  these  signatures  should  be  witnessed  by  the  Paying  Teller,  or  some 
other  officer  of  the  Bank. 

268 


PAYING  TELLER'S  CASH  BOOK, 

CITY  NATIONAL  BANK, 

JANUARY,  1867. 


1.  This  book  is  of  the  same  form  as  the  Receiving  Teller's  Cash  Book,  the  left  page 
recording  all  transactions  for  the  accounts  of  the  General  Ledger,  and  the  right  page  for  the 
Depositors'  Checks  paid  and  certified,  and  for  Certificates  of  Deposit.  Although  we  have 
passed  the  contents  of  this  book  into  the  General  Cash  Book,  the  Accountant  will  soon 
perceive  that  the  arrangement  of  the  Ledger  titles  enables  him  to  post  them  direct  from 
here  as  easily  as  from  a  Journal.  AVhen  this  mode  of  posting  is  adopted,  no  General  Cash 
Book  is  required, — the  balance  of  that  account  being  obtained  from  the  Cash  account  in  the 
General  Ledger. 


269 


VW/VCR8/Ty 


PAYMENTS  FOR  GENERAL  LEDGER. 


New  York, 


1st  Nat.  B'k,  Chicago         Fd  Draft  on  0.  H.  Bliss 
1st  Nat.  B'k,  New  Orleans    //        //       //   F.  J.  Herron 
Foreign  Bills  of  Exchange    //    for  Brown,  Brothers  &  Co.,  on 

G.  Peabodj  for  £10,000  St'g 
Exchange                               //    5%  Premium  for  do. 
U.  S.  Bonds                          II    for  300  5/20  Bonds  of  $1000 

each 

G.  C.  B.  1 

! 

500 

1000 

44444 

2222 

300000 
1348166 

44 
22 

66 

Iron  City  Nat.  Bank 
1st  Nat.  B'k,  Chicago 
1st  Nat.  B'k,  New  Orleans 


Fd  Coll.  Bates  &  Bell 
Less  Exchange 

II    Coll.  W.  S.  Hunter 
Less  Exchansre 


U.  S.  Bonds 


Exchange 


//    Coll.  Gregg  &  Hall 
"      //     J.  Kane 

Less  Exchange 
II    for  100  5/20  Bonds  of  $1000 

each 
'/    Sundry  Exchanges 

G.  C  B.  1 


3600 
36 


800 

8 


2000 

1600  1 1 3600 

11     72 


February 

35641    . 

i 

792 
3528 


100000 i 
116 


108000) 


March 


1st  Nat.  B'k,  Chicago 


1st  Nat.  B'k,  New  Orleans 


Iron  City  Nat.  B'k 


P'd  Coll.  Patterson  &  Wild 
Less  Exchange 

//    Coll.  Hay  &  Wood 
Less  Exchange 

II    Coll.  R.  Bruce 
Less  Exchange 


1200 
12 


2400 

48 


Foreign  Bills  of  Exchange   n    for  Pollock  &  Gilmore  on  R. 

Rankin  &  Co.,  for  £5000  St'g 


Exchange 


II    5  %  Premium  on  ditto 
"    Sundry  Exchanges 

G   C.  B.  1 


270 


1800 
18 


1111 

78 


11! 


1188 
2352 

1782 


22222  22 
118911 

"28733  38 


January  10, 1867. 


Jb'OR  DEPOSIT  LEDGER. 


Harper  &  Bros. 
Barclay,  Hope  &  Co. 
W.  B.  Archer 
'Lyon  &  Haven 
Rich'd  Irvin  &  Co. 


Paid  Check 
//         // 
//         II 
II         II 
II         II 


G.  C.  B.  1 


1800 

1500 

i     1000 

1200 

2400 

1 

1 
7900 

15th,  1867, 


Harper  &  Bros. 

R.  Irvin  &  Co. 

R.  C.  Root,  Anthony  &  Co. 

R.  Lenox 

Duff  Bros.  &Co. 

Harriet  Lenox 

John  AYard 

Lyon  &  Haven 

Jas.  Carver 

Ryan  &  Dale 

W.  B.  Archer 

Roy,  Wade  &  Co 


Paid  Check 


1500,  1000 


600,    500 

1500,  1000 

300,    400,    600 

600,  200 
1400,  1600 


G.  C.  B.  1 


2000 1 

1     2100! 

1       600^ 

2500 

1100 

600 

1100 

1 

2500 

1 

1300 

i 
1 

800 

3000 

1000 

1 

i 

18600 

:                      1 

16th,  1867. 


J.  AY.  Burnham 

Paid  Checks 

A.  B.  Hunter 

//         // 

Roy,  Wade  &  Co. 

//         // 

Ryan  &  Dale 

//         II 

J.  Carver 

II         II 

Barclay,  Hope  &  Co. 

II         II 

Duff  Bros.  &  Co. 

II          :i 

G.  C.  B.  1 


The  left  money  column  is  used  for  short-extending  checks  where  one  depositor 
draws  a  number  on  one  day. 


500,    700 

'     1200 

200,    100 

300 

400,    600 

1000 

2000,    500 

2500 

1600,    400 

1 
1 

2000 
1100 

1200,  1000 

] 

i 

2200 

i 

1 

i 

10300 

e  one  depositor 

271 


PAYMENTS  FOR  GENERAL  LEDGER. 


Circulation 

Foreign  Bills  of  Exchans^e 


Exchange 


Expense 


P'd  mutilated  ret'd  per  B.  N.  R.  1 
for  Betts  &  Turner  on  Bold 
&  Starkey  for  £4500  St'g 


//    69^  Premium  for  ditto 

//    1  %  disc't  on  our  Dr'ft  No.  1 

"    ^  %     "      "     "      "       "     2 


//    Rent  to  April  1st 
u    Salaries  to  April  1st 

G.  C.  B.  2 


4 
April 


!l200 
80 
10 

— 

500 
20000 

1290 

2975 

1 
1 

! 

1000 
1975 

1 

24765 

May 


Iron  City  Nat.  B'k 

Bank  of  Montreal 

1st  Nat.  B'k,  Boston 
Exchant^e 


P'd  Coll.  R.  Glass  &  Co. 
//       //      W.  Paysou 
Less  Exchange 

n    Coll.  G.  Wilde  &  Co. 
//       //     J.  Carter 
Less  Exchange 

//    Coll.  J.  Barker  &  Co. 

Less  Exchange 
II    Sundry  Exchanges 

G.  C.  B.  2 


800 
1200  J 

i2000 
1   20 

1980 
3564 

2394 

1 

62 

i 

2400 
1200 

3600 

1   36 

12400 
6 

1   8000: 

June 


Iron  City  Nat.  Bank 


1st  Nat.  B'k  Chicago 


P'd  Coll.  C.  H.  Ball 
//       It     J.  Home  &  Co. 
Less  Exchange 


/;    Coll.  W.  Baker 
Less  Exchange 
Foreign  Bills  of  Exchange    "    for  Dyer  &  Morgan  on  Swain- 
son  &  Willis,  £450  St'g 
Exchange 

//    8%  Premium  on  ditto 
II    Sundry  Exchanges 

G.  C.  B.  2 


1 
i 

2772 

800 

2000 

2800 



i  28 

i 

2970 

I 

3000 

30 

2000 

wain-  j 

218 

160 

i 

58 

1 

I 

1 

7960 ; 

i 
1 

1 

15th,  1867. 


FOR  DEPOSIT  LEDGER. 


o 


Paid  Check 


R.  Irvin  &  Co. 

R.  Lenox  //        'f 

R.  C.  Root,  Anthony  &  Co.  Certified  Check 

Harriet  Lenox  Paid            // 

Duff  Brothers  &  Co.  Certified*  n 

A.  B.  Hunter  //           // 

John  Ward  Paid           tt 

Paid 

Certified 


G.  C.  B.  2 


1 

2000   ' 
1100 

1000' 
600 

800 

5700 

2800 

~^m 

14th,  1867, 


Harper  &  Bros 
Harriet  Lenox 
John  Ward 
J.  Carver 
Ryan  &  Dale 
R.  Lenox 
Lyon  &  Haven 


aic 

[  Checks 

400,  500 

If 

// 

It 

II 

300,  400,  700 

II 

It 

200,  300 

II 

If 

600,  800 

II 

Protest 

on 

No 

8,  ret'd 

G.  C.  B.  2 


^00 

700 

1400 

500 

1400 

2 

175 


^450375 


12th,  1867. 


2 
2 
3 
1 
4 
5 
5 

Harriet  Lenox 

Jno.  Ward 

Duff  Bros.  &  Co. 

R.  C.  Root,  Anthony  &  Co 

W.  B.  Archer 

R.  P.  Duff 

G.  R.  Duncan 

Paid  Check 
It        It                          600,  500 
,/        //                           200,  300 
.     //        //                           400,  500 
//        It                          300,  900 
Certificate  of  Deposit  No.  1- 
It         It        It         ft    3 

G.  C.  B.  2 

1300 
1100 
500 
900 
1200 
2100 
1200 

-8300 

♦  See  Form,  Page  274, 

273 


TELLER'S  STATEMENT,  January  lOth,  1867. 


"  City  National  Bank"  Notes 

Legal  Tender  n 

National  Bank  n 

Gold 

Silver 

Cheeks  and  Drafts 

Memoranda 


Receipts 
Payments 


A.M. 

P.M. 

1 

10000 

150000 

150000 

160000 

1  44500 

87000 

1   10000 

2238 

50 

1871 
2100 

399238 

■50! 

218471 

175300 

i 

1  356066 

574538 

574538 

50 

■ 

84 


84 
50 


A  CERTIFICATE  OF  DEPOSIT. 


STAMP. 


has  deposited  in  this  Banh 
Dollars  payable  to  his 


order  on  return  of  this  certificate  properly  endorsed. 


'^^^rjrw:  fy  c.sH,E.:i 


1,    riiis  certificate  is  negotiable  either  by  blank  or  special  endorsement.    (See  Entry,  p.  265.) 


A  CERTIFIED  CHECK. 


M^^f^oii  cj^^y/c^  /<fi)/. 


<p^  ^<;a4et , 

7^  2/)<){mf-j . 


^o ^...^..iL/€tt4^e€v-€4: 

^i  STAMP.  5 


M  W-^ 


^^0  ^ioMei^  f  <^o. 


274 


THE 

OFFERING    BOOK, 

CITY  NATIONAL  BANK, 

JANUARY,  1867. 


1.  This  is  a  memorandum  of  the  business  paper  offered  to  the  Board  of  Directors  for 
discount.  The  owner  endorses  his  signature  on  each  piece  of  paper.  If  rejected,  it  is 
returned  to  him.  If  accepted,  it  is  numbered,  and  entered  in  the  Book  ^' Notes  and  Bills 
Discounted. '^ 


275 


CD 
00 


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0  0  Tf<  00  CO  Oq  T-( 
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0000 
00  T-H  !>.  a» 

r-(  r-i  rH 

Wm.  Macgregor 

W.  B.  Archer 

R.  Irvin  &  Co. 

Roy,  Wade  &  Co. 

Duff  Bros.  &  Co. 

R.  Lenox 

R.  C.  Root,  Anthony  &  Co. 

Ryan  &  Dale 
Wm.  Pagan  &  Co. 
Carter  &  Bates 
Wall  &  Birney 

Jas.  Beck  &  Co. 
W.  B.  Archer 
Wm.  Irons 
John  Doe 
Duff  Bros.  &  Co. 
Lyon  &  Haven 
J.  W.  Ryan 

R.  Morris 
Wm.  Pagan  &  Co. 
J.  Mills  &  Co. 
Wall  &  Birney 

City 

New  Orleans 

Pittsburgh 

City 

// 

St.  Paul,  Minn. 
Iowa  City 
Mobile,  Ala. 

J.  Wier  &  Co. 

Wm.  Page 

Hay  &  Wood 

R.  Bruce 

M.  Hunter  &  Co. 

J.  Morti  n 

J.  Carver 

S.  Hardy 
Jno.  Smith 
W.  Moody 
Birch  &  Woods 

1          ^ 

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277 


NOTES  AND  BILLS  DISCOUNTED 


No. 


Drawer. 


Harper  &  Bros. 
Kote 


W.  B.  Archer 
Note 


Endorser. 


W.  S.  Haven 
J.  W.  Burnham 
W.  S.  Murray 
Joel  Post 
R.  C.  Root 
Hardy,  Jones  &  Co. 
R.  Banks 


Payer. 


Mount,  Joy  &  Co. 
G.  W.  Leeds 
Hay  &  Wood 
Patterson  &  Wild 
Bateman  &  Hill 
J.  W.  Loring 


Payable  in 


New  Orleans 
City 

// 

tf 
Chicago 
City 

// 


Note.— 1.  All  paper  discounted  by  the  Board  is  entered  in  this  book.    It  is  the  property  of  the  Bank,  and  differs  Irom  paper 
received  for  collection.    Protested  paper  is  registered  in  the  "  Protest"  Book. 

NOTES  AND  BILLS  DISCOUNTED 


8 

Note 

9 

u 

10 

II 

11 

II 

12 

II 

13 

II 

W.  B.  Archer 
Wm.  Irons 
John  Doe 
Duff  Bros.  &  Co. 
Lyon  &  Haven 
J.  W.  Ryan 


Wm.  Page 

Hay  &  Wood 

R.  Bruce 

M.  Hunter  &  Co. 

J.  Morton 

J.  Carver 


City 

New  Orleans 

Pittsburgh 

City 


NOTES  AND  BILLS  DISCOUNTED 


Note 


Smith  &  Beck 
Paul  Cooper 

Wm.  Porter 

J.Ward 


Day  &  Martin 
Hart  &  Bowman 

Duncan,  Dunlap  &  Co. 

Geo.  Wildes 


Cit; 
// 


NOTES  AND  BILLS  DISCOUNTED 


Note 
II 
II 
II 


J.  Carver 
R.  Morris 
J.  Barker 
Porter  &  Hill 


J.  Barker  &  Co. 
J.  Kane 
S.  Lewis  &  Co. 
J.  W.  Bliss 


*  Boston  (sent  Ist  Nat.  B'k; 
City 


•  Where  we  have  only  an  occasional  collection,  it  is  nnnecessary  to  open  an  account  on  the  "Bills  Remitted  for  Collection' 
Book.    The  above  memorandum  is  sufficient.    See  P.  T.  C.  B.,  272,  and  11.  T.  C.  B.,  266. 

278 


Thursday,  January  10, 

1867 

. 

1 

Discounter. 

Date. 

Time. 

Due. 

da 

;                  1 
1 
Amount. 

Int. 

Exch. 

Int.  & 
Exch. 

Net 
Proceeds. 

1 

Whfcn 
Paid. 

1866. 

1867. 

18^7. 

Harper  &  Bros. 

1 

2  raos. 

Feb, 

4 

25 

2% 

2000 

8 

33 

40 

48 

33 

1951 

67 

2 

Peb.;  15 

Kyan  &  Dale 

Nov. 

12 

3    // 

15 

36 

1000 

6 

6 

994 

i 

14 

15 

Barclay,  Hope 

Dec. 

14 

60  ds. 

15 

36 

1800 

10 

80 

10 

80 

1789 

20 

3 

15 

J.  Carver 

14 

60  ff 

1 

15 

36 

1600 

9 

60 

9 

60 

1590 

40 

3 

15 

W.  B.  Archer 

N"ov. 

10 

4  mos 

Mar. 

13 

62 

i% 

1200 

12 

40 

12 

24 

40 

1175 

60 

4 

Mar|  IG 

Lyon  &  Haven 

Dec. 

14 

60  ds.  i 

[Feb. 

15 

36 

1500 

9 

9 

1491 

4 

Feb.  15 

R.  Irvin  &  Co. 

14 

3  inos. 

Mar. 

17 

66 

3000 

33 
89 

13 

52 

- 

33 
141 

13 

2967 

1 
1 

Marl  10* 

11958 

87 

Dep^s 

89 

13 

Int.l 

52 
12100 

— 

Exc^. 

12100 

Jour.  1  1 

= 



= 

*  Mar.  17  was  Sunday. 

t  The  Journal  explains  how  to  post  these  matters  direct  to  General  Ledger. 


Friday, 

February  15,  1867. 

! 

1866. 

SNov. 

i^ffi. 

W.B.  Archer    1 

13 

4  mos. 

Mar. 

16 

29 

3600 

17 

40 

17 

40 

3582 

60 

4 

Mar.  16 

R.  Irvin  &  Co. 

Oct. 

8 

5    // 

11 

24 

2% 

1  2400 

9 

60 

48 

57 

60 

2342 

40 

1 

,  16 

Roy,Wade&Co 

Sept. 

9 

6    // 

12 

25 

1% 

i  1800 

7 

50 

,18 

25 

50 

1774 

50 

5 

I  16 

DuffBros.«&Co.i 

i  1867. 

13  1 

6    tf 

16 

29 

13300 

15 

95 

1 

15 

95 

3284 

05 

3 

ilO 

R.  Lenox           ; 

Feb. 

11 

j30ds. 

16 

29 

1200 

5 

80 

5 

80 

1194 

20 

1 

16 

Root,  Anthony 

1 

i 

&Co. 

Jan. 

12 

60  tf 

16 

29 

2100 

66 

15 
40 

66 

- 

10 
132 

15 
40 

2089 

85 

1 

!  ^^ 

14267 

60 

Depijs. 

66 

40 

Int. 

66 

Exch. 

14400 

14400 

= 

Jour.  2 

Saturday,  March  16,  1867. 


A.  B.  Hunter    | 
J .  W.  Burnham 


1867. 

Jan. 
Peb. 

,  I  1866. 

DuffBros.&Co.liDec. 

1867, 

John  Ward    [Mar. 


3  mos. 
60  ds. 

4  mos, 
30  ds. 


1867. 

Apr. 


1500 
2400 

900 

2400 


7200 


50 


50 


1492  50 
2388 

895I50J 

2388 


7164 
36 


7200 


Monday,  April  15,  1867. 


J.  Carver 
Lyon  &  Haven 
W.  B.  Archer 
Ryan  &  Dale 


1867. 
Apr.  ao 
Feb.  11 
Jan.  11 
Mar.  12 


30  ds. 

3  mos. 

4  u 
60  ds. 


1867. 

May 


hfc 


2400 
1600 
1500 
1800 


73<^ 


11 


20 


7  73 
25 

8  70 


34 


12 


12 


8  70  1791 30 


46 


2376 
1592 


80||3 

27H4 


88 


1492175 


7253 


12 


34188 
12 


7300 


7.1 


3 

NOTES  AND  BILLS  DISCOUNTED 

No. 

Drawer. 

Endorser. 

Payer. 

Payable  in 

22 
23 
24 
25 

A.  J.  Pierce 

Harper  &  Bros. 

Note 

A.  Stewart  &  Co. 

J.  W.  Burnham 
J.  Betts  &  Co. 
Lyon  &  Haven 
J.W.Myers 

Hay  &  Wood 
J.  E.  Weldin  &  Co. 
Davy,  Jones  &  Co. 
J.  Home 

New  Orleans 
Pittsburgh 
City 
Pittsburgh 

NOTES  AND  BILLS  DISCOUNTED 


Harper  &  Bros. 
Note 

// 
J.  West  &  Co. 
Note 


Harper  &  Bros. 
J.  Page 
A.  T.  Howden 
Barclay,  Hope  &  Co. 
R.  Irvin  &  Co. 


W.  G.  Johnston  &  Co. 
A.  B.  Weed 
J.  Gardner 
F.  L.  Rainbow 
R.  Banks 


Pittsburgh 
City 

// 
Pittsburgh 
City 


FonEiaisr 

1.  This  is  a  register  of  all  Foreign  Bills  of  Exchange  usually  bought  by  the  President  under  (By- 
Board.    But  this  paper,  being  usually  bought  at  a  premium,  cannot  be  registered  on  "Bills  Discounted" 

Foreign  Bills 


When 
received. 

No. 

Drawers. 

Drawees. 

Endorsers. 

1867. 

Jan. 
Mar. 
Apr. 
June 

10 
16 
15 
12 

1 
2 
3 
4 

Brown  Brothers  &  Co. 
Pollock  &  Gilmore 
Betts  &  Turner 
Dyer  &  Morgan 

George  Peabody 
R.  Rankin  &  Co. 
Bold  &  Starkey 
Swainson  &  Willis 

Wm.  Page 
Marks  &  Cowden 
Stacy  &  Evans 
W.  Martin 

280 


Tuesday, 

May  14, 

1867, 

3 

Discounter. 

Date. 

Time. 

Due. 

ti 

1 

Amount. 

Int. 

Esch 

24 

8 

1S._ 
50 

Iut.& 
Ezch. 

1 

Net      I 
Proceeds.  | 

i 

When 
Paid. 

John  Ward 
Barclay,  Hope 
Lyon  &  Haven 
Koy,Wade&Co 

1867. 
May 

14 

14 

1 

14 

90  ds. 
60  II 
3  mos. 
90  ds. 

1867. 

Aug. 
^uly 
Aug. 

15 

16 

4 

15 

93* 
63 
82 
93 

2% 
1% 

1200 

800 

2400 

1800 

18 

8 

32 

_27 

87 

60 
40 
80 
90 

70 

42 

16 
32 

137 

60 
40 
80 
90 

70 

1157 

783 

2367 

1754 

6062 
87 
50 

6200 

40 
60 
20 
10 

30 
70 

2 
3 
4 
5 

Deprs. 

Int. 

Exch. 

6200 

— 

Jour.  3 

*  In  some  States  the  law  authorizes  the  banks  to  charge  interest  for  the  day  of  discount  and  day  of  payment. 
York  the  rule  is  as  stated  p.  45. 


In  New 


Wednesday,  June  12,  1867. 


1867. 
Harper  &  Bros.!  June 


J.  W.  Burnham 
A.  B.  Hunter 
Barclay,  Hope 
E.  Irvin  &  Ck). 


jMay 
June 


60  ds. 
4  mos. 

3  // 

4  II 
4   // 


1867. 

Aug. 
Oct. 
Sept. 
Oct. 


63 
113 

84 
118 
123 


1% 


600 
1600 
1800 
1200 
4000 


9200 


6 
30 
25 
23 

JS2 

tl67 


12 


18 


12 
30 
25 
35 

_S2 

185 


587 
1569 
1774 
1164 

mis 


901477 
167 
_18 


9200 


Deprs. 

Int. 

Bxch. 

Jour.  3 


BILL   BOOK. 

Laws,    Article  X.)  direction  of  the  Board ;  or,  if  desired,  each  transaction  may  be  submitted  to  the 
book  "without  changing  its  form. 


of  Exchange. 

Where  drawn. 

Dated. 

Sight. 

Payable  in. 

Amount 

Wnen 
Remitted. 

Memoranda. 

New  York 
Montreal 
Toronto 
New  York 

1867. 
Jan. 
Mar. 
Apr. 
June 

10 
12 

60  days 
60    II 
30    II 
60    // 

London 
Liverpool         i 

// 
London 

10000 

5000 

4500 

450 

,. 

d.\ 

\ 

1867. 

Jan. 
1  Mar. 
;  Apr. 

June 

12 
16 
15 
12 

1 

Jour.l* 
2 
2 
3 

*  See  also  P.  T.  C.  B.  1. 

281 


Q 
pa 

GQ 
Pi 


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9Q9 


BANK-NOTE  REaiSTER, 

CITY  NATIONAL  BANK, 

JANUARY,  1867. 


1.  This  book  registers  all  Bank-notes  received  from  the  Comptroller  of  the  Currency. 
As  they  are  signed,  they  pass  into  the  Receiving  Teller's  Cash  Book  as  money.  When 
mutilated,  and  returned  to  the  Comptroller,  they  pass  into  the  Paying  Teller's  Cash  Book 
to  credit  of  Cash  and  debit  of  "  Circulation." 


283 


BANK-NOTE 


Issued. 


1867. 
Jan. 


Feb. 


Mar. 


Impres- 

Let- 

Date. 

sions. 

tee. 

1867. 

!| 

10 

4000 
4000 
4000 
4000 

A 
B 
C 
D 

Jan. 

5  1 

10 

2000 
2000 
2000 
2000 

A 
B 

Jan. 

11 

5 

15 

10000 

, 10000 

10000 

10000 

A 
B 

Jan. 

5 

1 

15 

800 
800 
800 
800 

C 
D 

Jan. 

5 

! 

16 

500 
500 
500 
500 

A 
B 
C 
D 

Jan. 

5 

16 

100 

A 

Jan. 

5 

100 

B 

100 

C 

100 

D 

16 

25 
25 
25 
25 

A 
B 
C 
D 

Jan. 

5 

■ 

16 

5 
5 
5 
5 

A 
B 
C 
D 

Jan. 

5 

16 

2 

2 
2 
2 

A 
B 
C 
D 

Jan. 

5 

Treasury  Number. 


324001  to  328000 
324001  //  328000 
324001  //  328000 
324001  //  328000 


Bank  Number. 


Ito  4000 

1  //  4000 

1  //  4000 

1  //  4000 


328001  to  330000 
328001  //  330000 
328001  //  330000 
328001  //  330000 


4001  to 
4001  // 
4001  // 
4001  // 


6000 
6000 
6000 
6000 


415001  to  425000  \      6001  to  16000 


415001  //  425000 
415001  //  425000 
415001  //  425000 


425001  to  425800 
425001  //  425800 
425001  //  425800 
425001  If   425800 


430001  to  430500 
430001  If  430500 
430001  //  430500 
430001  //  430500 


430501  to  430600 
430501  //  430600 
430501  If  430600 
430501  ff   430600 


430601  to  430625 
430601  //  430625 
430601  If   430625  i 
430601  //  430625  i 


6001  //  16000 
6001  //  16000 
6001  //  16000 


16001  to  16800 
16001  //  16800 
16001  //  16800 
16001  //  16800 


16801  to  17300 
16801  //  17300 
36801  //  17300 
16801  //  17300 


17301  to  17400 
17301  //  17400 
17301  If  17400 
17301  If   17400 


17401  to  17425 
17401  //  17425 
17401  If  17425 
17401  //  17425 


430626  to  430630  I  17426  to  17430 
430626  //  430630   17426  //  17430 


430626  //  430630 
430626  If   430630 


430631  to  430632 
430631  If  430632 
430631  //  430632 
430631  If   430632 


17426  //  17430 
17426  //  17430 


17431  to  17432 
17431  If  17432 
17431  //  17432 
17431  If   17432 


Denomi 

NATION. 

Amount. 

58 

5s 

58 

58 

lOs 
10s 
10s 
lOs 

5s 
5s 

58 

5s 

lOs 
lOs 
10s 
10s 

20s 
20s 
20s 
208 

1   50s 

1   508 
i   508 

1   50s 

1 

1  lOOs 

i  lOOs 

1  100s 

100s 

500a 
500s 
5008 
500s 

1000s 

1  1000s 

lOOOs 

1000s 

20000 
20000 
20000 
20000  1 

80000 

20000 
20000 
20000 
20000 

80000 

50000 
50000 
50000 
50000 

200000 

8000 
8000 
8000 
8000 

32000 

10000 
10000 
10000 
10000 

40000 

5000 
5000 
5000 
5000 

20000  ■ 

2500 
2500 
2500 
2500 

10000 

2500 
2500 
2500 
2500 

10000  : 

2000 
2000 
2000 
2000 

8000  ] 

E.T.C.B.2 


284 


REGISTER. 


When  AND 


1867. 
Apr. 


1       i 


HowBetiBiD. 


Sent  to  Wasliington 


Notes. 


10 
10 
20 
20 


Treastjrt  Nchber. 


324001  to  324010 
324051  //  324060 
328001  //  328020 
328041  //  328060 


Baitk  Nuvbeb. 


Ito     10 

51  n      60 

4001.//  4020 

4041  //  4060 


Dexomx- 
siatioit. 


5s 

69 

lOs 

10s 


Amount. 


50 
60 

200 
200 

500 


Mem. 


Mutilated 


P.T.C.B.2 


286 


FORM  OF  PROTEST  FOR  NON-FAYMENT. 


F 


NiTED  States  of  America. 


CSSc  if  ^noix>n^  That  on  the  day  of 
the  date  hereof,  f,  W^.  ^,  ^<m/z^  gotiiri} 
gulrli^,  hy  authority  of  the  ^0«tm0JUr^llIttt  0t 
^JCUtt.S-tjIlUHttillt  dzily  coimnissioned  and  siuorn, 
residing  in  the  City  of  Tittshiirgh,  County  of 


J^IRTUt   LIBERTY   U   INDEPENDENCE. 

Allegheny ,  in  the  said  Coinmomvealth,  at  the  request  of 

ffc®  iTOi  iltf  laitoaal  laitp 

exlhihited  the  original  ^=A^ote  whereof  a  true  copy  is  on  the  other  side 
written  {the  ti7)%e  therein  specified  for  its  payn^ent  having  fully  expired), 

iLcjtttdet/ 


whereof  I  duly  notified  the  <=^/f&(i/^i^t  ei^nd  &'nd<yiA^'t. 

^^2Shercupon  /,  the  said  Notary,  at  the  request  aforesaid,  Have 
'^xaU^Uiif  and  Do  hereby  solemnly  ^tut^^t,  against  the  .=z/M€i/£e^  tmza 
^'Ticoo-i^et  of  the  said  <=A^o^e^  and  all  others  concerned,  for  all  exchange, 
re-exchange,  costs,  damages  and  interests,  suffered  and  to  he  suffered 
for  ivant  of  .MjPeiy'me^it  thereof. 


lus  gone  aub  |rotvs{cb,  at  Pittsburgh,  the  ^^tA  day  of  ^=yf6€ty^  ISS^^ 


r- 


In  Testimony  Wh^rX;af ^  I  hare  ?iereimto  set  77?j' 
hand  a^id  affixed  nry  A'blarial  seal,  the  day 
and  year  above  n^rltten. 

'^.    .^.    ^00/z^    Notary  Public 

286 


CITY  COLLECTION  REGISTER, 

CITY  NATIONAL  BANK, 

JANUARY,  1867. 

1.  Notes  and  Bills  received  for  collection  and  payable  in  the  City  are  registered  in  tlii.s 
book.  In  a  limited  business  the  payments  may  pass  direct  into  the  Receiving  Teller'ij 
Cash  Book.  But,  as  the  amounts  never  mature  in  the  same  order  that  they  are  entered, 
the  dates  of  payment  can  be  more  conveniently  brought  into  regular  order  on  the  ^'  Passed 
Collection  Register." 

THE  FOREIGN  COLLECTION  REGISTER 


2.  Records  all  paper  falling  due  out  of  the  City  and  which  has  to  be  forwarded  to  our 
agent  in  time  for  presentation  on  day  of  maturity.  As  forwarded,  each  is  passed  into  the 
Book  "Notes  and  Bills  Remitted  for  Collection." 


287 


1 

CITY  NOTES  AND  BILLS 

J 

When 
received. 

Payer. 

Endorser. 

Owner. 

1867. 

Jan. 

10 

Baker  &  Fox 

R.  C.  Root 

Barclay,  Hope  &  Co. 

Joel  Post 

J.  W.  Burnham 

R.  Irvin  &  Co. 

R.  S.  Davis 

R.  Barnes  &  Co. 

Jas.  Carver 

J.  B.  Marks 

Paul  Jones 

Lyon  &  Haven 

Mar. 

3 

Ryan  &  Dale 

Jno.  Taylor  &  Co. 

1st  Nat.  Bk.  New  Orleans 

R.C.  Root,  Anthony  &  Co. 

Wm.  Black 

1st  Nat.  Bk.  Chicago 

Apr. 

25 

Baker  &  Hill 

J.  W.  Burnham 

//                  U                    II 

Porter  &  Dick 

Bailey  &  Coy 

II            If             If         . 

W.  a.  Ray 

W  Morris 

II            It              II 

May 

14 

J.  L.  Dixon 

Paul  Jones 

R.  C.  Root,  Anthony  &  (Jo. 

Day  &  Martin 

G.  A.  Bayard 

II                      It 

W.  Burton 

Joel  Post 

R.  Lenox 

Jas.  Carver 

R.  Lenox 

// 

Wm.  Beach 

Harper  &  Brothers 

Harper  &  Bros. 

H.  J.  Holmes 

Barclay,  Hope  &  Co. 

Barclay,  Hope  &  Co. 

Allen  Park 

//                     U                 II 

It                 If 

A.  B.  Ryan 

J.  Hardy 

J.  Carver 

. 

J.  W.  Parker 

J.  Carter 

If 

FOREIGN  NOTES  AND  BILLS 


When 
received. 

No. 

Drawer. 

On  whom. 

In  favor  of. 

Payable  in. 

1867. 

Jan. 

10 

1 

Bates  &  Bell 

Note 

A.  Stewart  &  Co. 

Pittsburgn 

2 

Harper  &  Bros. 

W.  S.  Hunter 

Harper  &  Bros. 

Chicago 

3 

R.  Irvin  &  Co. 

J.  Kane 

R.  Irvin  &  Co. 

New  Orleans 

Apr. 

15 

4 

Wm.  Pagan 

G.  Wilde  &  Co. 

R.  Lenox 

Montreal 

5 

R.  Manly 

Jas.  Carter 

// 

It 

6 

R.  Glass  &  Co. 

Note 

J.  W.  Burnham 

Pittsburgh 

7 

W.  Payson 

II 

R.  Dick  &  Co. 

// 

8 

A.  J.  Turner 

II 

R.  Lenox 

II 

May 

14 

9 

C.  H.  Ball 

It 

Wm.  Hood 

It 

10 

J.  Home  &  Co. 

II 

Wm.  Lyon 

It 

11 

Wm.  Baker 

II 

Wm.  White 

Chicago 

12 

J-.  Morton 

J.  C.  Baker  &  Co. 

A.  B.  Hunter 

New  Orleans 

13 

Roy,  Wade  &  Co. 

W.  S.  HaVen 

Ourselves 

Pittsburgh 

14 

A.  D.  Walker 

Note 

R.  Weston 

Chicago 

15 

Chas.  Page 

// 

Lyon  &  Haven 

Pittsburgh 

16 

J.  Butler 

II 

W.  Watts 

Chicago 

17 

Myers  &  Hunter 

'1 

J.  Post 

New  Orleans 

288 


RECE 

IVEE 

I  F 

OR  COLLECTION. 

1 

1 

No. 

! 

Date. 

Time. 

Due. 

Amonnt. 

Memoranda. 

1 

1866. 

. 

1867. 

1 

Aug. 

12; 

6  months 

,Feb. 

15 

1600 

Passed  Feb.  15th 

2 

Oct. 

12 

4       //         ! 

15 

2400 

//               15th 

3 

Nov. 

12 

3       //          1 

15 

1200 

1 

//                15th 

4 

,  Dec. 

14 

60  days 

15 

2100 

ff               15th 

5  : 

Feb. 

20 

10  ds.  s'gt. 

Mar. 

16 

1200 

*w       Mar.  16th 

6 

261 

10      //        ^ 

16 

1600 

16th 

7 

Hi 

3  months    1 

May 

14 

3600 

! 

//       ^lay  14th 

8 

Jan. 

11; 

1  4       // 

14 

2100 

//               14th 

9 

Mar. 

12  i 

1  60  days       \ 

1 

14 

1        1200 

//                14th 

10 

9: 

!  3  months 

June 

12! 

1        1600 

ff       June  12th 

11 

Feb. 

9 

:  4       // 

12 

1100 

12th 

12 

Jan. 

9 

1  5       // 

12 

2400 

//               12th 

13 

Feb. 

9 

1  4       // 

12 

1800 

12th 

14 

Apr. 

9| 

1  3       // 

July 

12 

900 

15    1 

Mar. 

9! 

4       // 

1 

12 

1200 

16 

^i 

14       //          1 

12 

1800 

17    i 

Apr. 

9! 

1  3       //          1 

12 

1800 

18 

Feb. 

9; 

5      //         i 

12 

1500 

• 

RECEIVED  FOR  COLLECTION. 


i 
Owner. 

Date. 

Time. 

Due. 

Amount. 

i 

Exchange. 

■ 

Net 
i    Proceeds. 

Memoranda, 

I 

1866. 

i 

1867. 

! 

i 

Ryan  &  Dale 

Dec. 

12 

60  days 

Feb. 

13 

'    3600 

1       36 

!    3564 

i  Passed  Feb.  15 

Harper  &  Bros. 

Nov. 

9 

3  months 

12 

i      800 

1         8 

;      792 

If               15 

R.  Irvin  &  Co. 

Oct. 

1867. 

8, 

1 

|4      // 

1 

11 

1600 

32 

1568 

//               15 

R.  Lenox 

Feb. 

8 

1 3      // 

May 

11 

2400 

24 

2376 

//       May  14 

R.  Lenox 

Jan. 

8 

4      1/ 

1 

11 

1200 

12 

1188 

It                14 

R.  Irvin  &  Co. 

Mar. 

10 

60  days 

1 

12 

800 

8 

792 

//               14 

Harper  <&  Bros. 

Feb. 

9 

3  months 

1 

12 

1200 

12 

1188 

//               14 

R.  Lenox 

Jan. 

9 

4      // 

12 

1800 

Ret'd 

i  Protested 

W.  B.  Archer 

May 

7 

30  days 

June 

9 

800 

8 

792 

i  Passed  June  12 

W.  B.  Archer      1 

Apr. 

7 

60    // 

9 

2000 

20 

1980 

!      //                12 

Ijvon  &  Haven 

7 

60    // 

1 

9 

3000 

30 

2970 

'/               12 

A.  B.  Hunter 

May 

14 

60ds.sgt. 

'  Aug. 

27 

2400 

Roy,  Wade  &  Co. 

14 

60     // 

i 

22 

1000 

Roy,  Wade  &  Co.  ^ 

Mar. 

15 

j  4  months  1 

i  July 

18 

1500 

Lyon  &  Haven    i 

15: 

!4      // 

1 

18 

800 

A.  B.  Hunter       j 

15' 

4      // 

18 

1600 

Duff  Bros.  &  Co. 

i 
1 
1 

1 

i 
i 

Apr. 

15; 

i 

i 
1 

3      // 

1 

i 
i 

18 

1100 

1 

289 


NOTES  AND  BILLS  REMITTED  FOR  COLLECTION. 
Iron  City  National  Bank,  Pittsburgh. 


1 

When  sent.      1 

I 

No. 

1 

Payer. 

Amount. 

When  duo. 

Memoranda. 

1867. 

Feb. 

1 

Bates  &  Bell 

3600 

1 

1867. 

Feb. 

13 

t 

Passed  Feb.  15 

Mar. 

1 

10 

R.  Bruce 

1800 

Mar. 

12 

R.T.  C.B.Mar.  10 

May 

1 

6 

7 
8 

R.  Glass  &  go. 
W.  Payson 
A.  J.  Turner 

800 
1200 
1800 

May 

12 
12 
12 

Passed  May  14 
It                14 
Protested 

14 

9 

C.  H.  Ball 

800 

June 

9 

Passed  June  12 

10 

J.  Home  &  Co. 

2000 

9 

//                12 

13 

W.  S.  Haven 

1000 

60  ds. 

sgt, 

First  National  Bank  of  New  Orleans. 


1867. 

1 

1867. 

i 

Jan. 

20 

1 

Gregg  &  Hall 

2000 

Feb. 

4 

i  R.  T.  C.  B.  Feb.  15 

Feb. 

1 

i     3 

J.  Kane 

1600 

11 

Passed  Feb.  15 

Mar. 

1 

9 

Hay  &  Wood 

2400 

Mar. 

11 

R.T.C.B.  Mar.  IG 

May 

14 

12 

1 

J.  C.  Baker  &  Co. 

2400 

60  ds. 

sgt 

First  National  Bank  of  Chicago. 


1867. 

1 

i 

~ 

!     1867. 

; 

Feb. 

1' 

'     2 

W.  S.  Hunter 

800 

1 

Feb. 

12 

1  Passed  Feb.  15 

Mar. 

1 

5 

Patterson  &  Wild 

1200 

1 

Mar. 

13 

R.  T.  C.  B.  Mar.  . 

May 

14 

1 

11 

Wm.  Baker 

3000 

June 

9 

Passed  June  12 

Bank  of  Montreal, 

Canada. 

1887. 

Apr. 

25 

4 
5 

Geo.  Wilde  &  Co. 
Jas.  Carter 

2400 
I    1200 

1867. 

May 

11 
11 

Passed  May  14 
//               14 

1.  In  our  Private  Bankers'  Accounts,  pp.  360  and  361,  we  give  another  form  of  this  book.    The  above  is  the  most  conve- 
nient for  a  large  foreign  collection  business.  < 

2.  All  paper  remitted  to  our  agents  for  collection  is  entered  upon  this  book. 

3.  After  allowing  sufficient  time  for  the  return  of  the  paper,  we  enter  our  own  in  the  "  Receiving  Teller's  Cash  Book,"  and 
Collections  in  the  "  Passed  Collection  Register,"  debiting  at  the  same  time  our  agent  for  the  amount. 

290 


PASSED  CITY  AND  FOREIGN 

COLLECTION    REGISTER. 

CITY  NATIONAL  BANK, 
JANUARY,  1867. 


1.  Banks  generally  keep  a  Passed  City  and  a  Passed  Foreign  Collection  Register.  Tc 
save  space,  we  have  entered  both  on  this  book,  the  use  of  which  is  explained  in  "  City  Col- 
lection Register,"  p.  287.  When  the  business  requires  two  Passed  Collection  Registers, 
this  form  will  serve  for  both.  Reference  to  the  Receiving  Teller's  Cash  Book  explains  the 
mode  of  posting  them. 

2.  Sight  Drafts  sent  us  for  collection  are  entered  in  this  book  without  passing  through 
"  City  Collection  Register." 


291 


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292 


TICKLER. 

CITY    NATIONAL    BANK, 

JANUARY,  18G7. 


1,  This  book  records  the  day  of  payment  of  all  the  business  paper  in  the  Bank.  It  is 
made  up  from  the  Discount  Book  and  Collection  Registers.  One,  and  sometimes  two  pages 
have  to  be  reserved  for  every  day's  business  in  the  year.  And  in  extensive  business  it  is 
often  convenient  to  have  one  book  for  discounted  paper,  and  another  for  collections,  and 
sometimes  one  for  Foreign  collections.  To  save  room,  we  have  entered  all  in  one  book,  the 
form  of  which  will  serve  for  the  others  when  the  nature  and  extent  of  the  business  require 
them.  Although  a  very  important  book,  it  is,  strictly  speaking,  only  a  memorandum-book, 
from  which  payers  are  notified  of  the  day  upon  which  their  paper  falls  due.  The  Directors 
also  regulate  their  discounts  by  learning  from  it  the  amount  of  discounted  paper  falling  due 
every  day. 

2.  As  paid,  our  own  paper  is  marked  "  Entered,"  or  "  Paid."  Collections  are  marked 
"  Passed." 


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1 

Endorser. 

W.  B.  Archer 
Duff  Bros.  &  Co. 
Lyon  &  Haven 
J.  W.  Ryan 
J.  Taylor  &  Co. 

AVm.  Black 

11 

W    i 

Smith  &  Beck 
Paul  Cooper 
Wm.  Porter 
J.  Ward 

R.  Lenox 
R.  Lenox 

J.  W.  Burnham 
R.  Dick  &  Co. 
R.  Lenox 

> 

6 

R.  Morris 
J.  Barker 
Porter  &  Hill 
J.  W.  Burnham 

Bailey  &  Coy 
W.  Morris 

>* 

Wm.  Page 
M.  Hunter  &  Co. 
J.  Morton 
J.  Carver 
Ryan  &  Dale 

R.  C.  Root,  Anthony  &  Co. 

Due  March  17th,  1867 
J.  W.  Loring 

Due  April  15th,  1867 
Day  &  Martin 
Hart  &  Bowman 
Duncan,  Dunlap  &  Co. 
Geo.  Wilde 

Due  May  11th,  1867 
G.  Wilde  &  Co. 
J.  Carter 

Due  May  12th,  1867 
R.  Glass  &  Co. 
W.  Payson 
A.  J.  Turner 

Due  May  13th,  1867 
J.  Barker  &  Co. 

Due  May  14th,  1867 
J.  Kane 
S.  Lewis  &  Co. 
J.  W.  Bliss 
Baker  &  Hill 

Porter  &  Dick 
W.  G.  Ray 

1 

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R.  Lenox 
R.  Lenox 

R.  Irvin  &  Co. 
Harper  &  Brothers 
R.  Lenox 

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29G 


DEPOSITORS'  LEDGER. 

CITY  NATIONAL  BANK. 

JANUARY,  1867. 

1.  This  book  contains  no  accounts  but  those  of  Depositors  and  Certificates  of  Deposit. 
We  have  adopted  a  new  form  which  we  think  Banks  will  find  very  convenient  in  business, 
as  it  constantly  shows  the  balance  of  each  account.  The  accounts  are  never  closed  until 
the  depositor  desires  his  Pass  Book  balanced.  His  account  is  then  footed,  and  the  balance 
brought  down  into  the  new  account.     See  DuflF  Brothers  &  Co.'s  account,  p.  300. 

2.  The  aggregate  balances  of  this  Ledger  must  agree  with  the  balance  of  the  "  Deposi- 
tors"' account  in  the  General  Ledger. 


297 


RICHARD  IRVIN  &  CO. 


i 

Checks. 

Deposits.       ' 

1      Balance. 

1867. 

1 

1 

Jan. 

10 

Cash 

Discount  No.  7 
Check 

2400 

I 

1  1500 
2967 

2067 

Feb. 

15 

Cash 
Collection 

// 
Discount  No.  9 
Check 

2100 

1 

1800 
1552 
2400 
2342 

40 

8061 

40 

Apr. 

15 

// 

2000 

6061 

40 

May 

14 

Collection 

784 

6845 

40 

June 

12 

Discount  No.  30 

1 

1 

t 
1 

3918 

10763 

40 

ROBERT  LENOX. 


1867. 

1 

~~ 

i 

Jan. 

10 

Cash 

1200 

Feb. 

15  i 

1 

// 
Discount  No.  12 
Checks 

2500 

1400 
1194 

20 

1294 

20 

Apr. 

15 

Cash 

, 

3000 

, 

Check 

.UOO 

3194 

20 

May 

14 

Collections 
Protest  on  No.  8. 

2 

1 

3528 

6720 

20 

June 

12 

Collections 

'! 

4200 

10920 

20 

R.  C.  ROOT,  ANTHONY  &  CO. 


1867. 

u\ 

Jan. 

Cash 

1600 

Feb. 

15 

Discount  No.  13 
Check 

600 

900 
2089 

85 

3989 

85 

Apr. 

15 

Cash 

Certified  Check 

1000 

5000 

7989 

85 

May 

14  1 

Cash 

3000 

10989 

85 

June 

12 

CollectioDH 

2700 

1 

Checks 

900 

1 

[ 

1 

12789 

85 

298 


JOHN  WARD. 


i 

CHSCK8. 

Deposits. 

Balance. 

1867. 

Jan. 

10 

'  Cash 

1800 

Feb. 

15 

1  Checks 

1100 

700 

Mar. 

16 

Discount  No.  17 
iCash 

2388 
1500 

4588 

Apr 

15 

1     '' 
1  Check 

2000 

2500 

5088 

May 

u 

Discount  No.  22 
j  Checks 

1400 

1157 

40 

4845 

40 

June 

12 

// 

1100 

3745 

40 

HARRIET  LENOX. 


1867. 

Jan. 
Feb. 


Cash 
Check 


10 

15 

Mar.  16  I  Cash 
Apr.  il5 


May 
June 


Check 

Cash 

Check 

Cash 

Check 


1000 

600 

1200 
1800 

.400 
1600 

600 

1100 

2800 

700 

1800 

3200. 

1300 

. 

3700 

HARPER  &  BROTHERS. 


1867. 

Jan. 

10 

Cash 

Discount  No.  1 
Check 

1800 

2000 
1951. 

67 

2151 

67 

Feb. 

15 

Cash 

Collection 

Check 

2000 

2600 

784 

3435 

67 

Apr. 

15 

Cash 

5700 

9135 

67 

May 

14 

Collection 
Checks 

900 

1176 

9411 

67 

June 

12 

Discount  No.  26 

587 

70 

9999 

37 

• 

299 


s 


DUFF  BROTHERS  &  CO, 


1867. 

Jan. 
Feb. 

10 
15 

Mar. 

16 

Apr. 

15 

May 
June 

14 
12 

30 

June 

i 
30 

Cash 

// 
Discount  No.  11 
Check 

Discount  No.  16 
Checks 
Cash 

Certified  Check 
Cash 

// 
Checks 
Balance 


Balance 


Checks. 

1                  1 

Deposits. 

1 

:       Balance 

1 

1000 

1000 

3284 

05 

1100 

895 

50 

4184 

2200 

1 

6500 

2879 

800 

2000 
2100 

8579 
10579 

i 

500 

12179 

12179 

55 

16779 

55 

16779 

55 

12179 

55 

BARCLAY,  HOPE  &  CO. 


1867. 

il 

Jan. 

10  , 

Fd!). 

15 

Mar. 

16  ! 

May 

14 

June 

12 

Cash 

Discount  No.  3 
Check 
Collection 
Cash 
Check 

Discount  No.  23 
//  //     29 


800 

1789 

20 

1500 

1600 
1400 

1089 
2689 

1 

1100 

2989 

783 

60 

3772 

1164 

40 

4937 

JAMES  CARVER. 


1867. 

1 

Jan. 

10 

Cash 

600 

Discount  No.  4 

1590 

40 

2190 

40 

Feb. 

15 

Collection 
Checks 

1300 

1200 

2090 

40 

Mar. 

16 

// 

2000 

90 

40 

Apr. 

15 

Discount  No.  18 
Cash 

.    . 

2376 
2100 

80 

4567 

20 

May 

14 

Checks 

500 

4067 

20 

300 


RYAN  &  DALE. 


CflECKS. 

Deposits. 

Balance. 

1807. 

Jan. 

10 

Cash 
1  Discount  No.  2 

800 

994 

1794 

Feb. 

15 

! 

;  Collection 
1  Checks 

800 

3528 

4522 

Mar. 

161 

II 

2500 

2022 

Apr. 

15 

Discount  No.  21 

1791 

30 

3813 

30 

May 

14| 

Checks 

1400 

2413 

30 

W.  B.  ARCHER. 


1867. 

Jan 

10 

Discount  No.  5 
Check 

1000 

1175 

60 

1 

1 

175 

60 

Feb. 

15 

Discount  No.  8 
Checks 

3000 

3582 

60 

758 

20 

Apr. 

15 

Discount  No.  20 
Cash 

1492 

10000 

75! 

1 

12250 

95 

June 

12 

Collections 
Checks 

1200 

2744 

13794 

« 

95 

LYON  &  HAVEN. 


1867. 

Jan. 

10 

Feb. 

15  i 

Apr. 

15 1| 

May 

14 

June 

12 

1 

Discount  No.  G 

Check 

Collection 

Checks 

Discount  No.  19 

Cash 

Discount  No.  24 

Protest  on  No.  19 

Cash 

Collection 


1491 

1200 

2100 

291 

2500r 

1592 
4350 
2367  ^ 

27 
20 

109 
5833 

1 

1 

1 

1 

75 

1300 
2940 

8198 
12438 

1 

27 
72 


The  red  figures  indicate  the  balance  overdraAvn. 
301 


4l 

A.  B. 

HUNTER. 

15 
16 

15 

12 

Cash 

Discount  No.  14 
Cash 
Checks 
Certified  Cheek 

Discount  No.  28 

i 

Checks. 

Deposits. 

1 

Balance. 

1867. 

Feb. 
Mar. 

Apr. 
June 

300 
1000 

400 
1492 
1100 

1774 

50 

80 

2692 
1692 

5( 
5( 

Cash 

1200 

4667 

3( 

ROY,  WADE  &  CO. 


1867. 

Feb. 

15 

Mar. 

16 

Apr. 

15 

May 

14 

Discount  No.  10 

Check 

Checks 

Cash 

Discount  No.  24 


1774 

50 

1000 

774 

1000 

3700 

225 
3474 

1754 

10 

5228 

J.  W.  BURNHAM. 


1867 

Mar. 

16 

Discount  No.  15 

Cash 

Checks 

1200 

2388 
1600 

2788 

Apr. 

15: 

Cash 

1950 

4738 

June 

12 

1 

Discount  No.  27 

1569 

87 

6307 

8- 

CERTIFICATES  OP  DEPOSIT. 


1867. 

Apr. 

15| 

R.  P.  Duff, 
H.  P.  Ford, 

May 

14 

G.  R.  Duncan, 

June 

12i 

R.  P.  Duff, 

G.  R.  Duncan, 

No.  1 
2 
3 
1 
3 


' 

2100 

2400 

4500 

1200 

5700 

2100 

1200 

2400 

302 


GENERAL   LEDGER, 

CITY   NATIONAL   BANK 

JANUARY,  1867. 


1.  Tliis  book,  like  tlie  Ledger  in  any  other  business,  is  the  book  which  exhibits  all  the 
results  of  the  business.  In  the  present  instance  it  is  made  up  exclusively  from  the  Journal. 
In  a  business  in  which  that  book  is  dispensed  with,  the  Ledger  is  made  up  from  the  Gene- 
ral Cash  Book,  as  in  our  Private  Bajiker's  Books.  But,  as  we  stated,  notes  pp.  261  and 
269,  we  have  arranged  the  Receiving  and  Paying  Tellers'  Cash  Books  so  as  to  admit  of 
direct  posting  to  this  Ledger.  When  that  mode  of  keeping  the  books  is  adopted,  these 
two  books  will  be  auxiliaries  to  the  Deposit  and  the  General  Ledger. 

2.  From  this  book  the  monthly  and  semi-annual  statements  are  made  out. 

3.  Having  given  indexes  to  all  the  Ledgers  in  the  first  three  parts  of  this  work,  we  omit 
them  in  the  fourth  part. 

4.  The  Taxes  on  the  profits,  circulation,  and  deposits  of  the  Bank,  being  payable  in  July 
and  January,  could  not  be  practically  exhibited  horc. 

5.  Before  closing,  a  Trial  Balance  must  be  taken.  We  have  made  the  closing  entries  on 
the  face  of  the  Ledger.  Those  who  prefer  journalizing  them  can  do  as  we  have  done  with 
our  Rail  Road  accounts,  pp.  33-i  and  335. 


303 


Dr. 


CAPITAL 


STOCK. 


Cr. 


1867. 
June 


30 


Balance 


5 

600000 

1866. 

Dec. 

1867. 

Jan. 
June 

31 
10 

30 

600000 

Cash 
// 

Balance 


1 
1 

300000 
300000 
600000  1 

600000 

CASH 


ACCOUNT. 


1866. 

\ 

1866. 

Dec. 

31 

Sundries 

1 

300038 

50 

Dec. 

31 

Expense 

1 

200 

1867. 

j 

1867. 

1 

Jan. 

10 

Capital  Stock 

1 

300000 

1 

Jan. 

10 

Sundries 

l| 

200600 

Sundries 

1 

15300 

1 

// 

1 

66066 

66 

Circulation 

i! 

160000 

U.  S.  Bonds 

] 

300000 

Feb. 

15 

Sundries 

11 

261200 

Feb. 

15 

Sundries 

1 

126600 

Mar 

16 

// 

2i 

117400 

iMar. 

16 

// 

2: 

,    39033 

33 

Apr. 

15 

II 

2 

101633 

34: 

1  Apr. 

15 

// 

2 

33265 

May 

14 

It 

3 

89896 

iMay 

14 

// 

3 

12903 

75 

June 

12 

II 

3 

43308 

44 

June 

12 

II 

3 

16260 

1388776 

^ 

30 

Balance                       f. 

5 

603847 
1388776 

54 

28 

June 

30 

Balance 

603847 

5l 

UNITED  STATES 


BONDS. 


1867.    i 

Jan.   10 
Feb.   15 

Cash 
// 
// 

Balance 

1 
1 
1 

200000 
300000  1 
100000  1 

1867. 
June 

30 

Balance                      f. 

5 

600000 

600000 

600000 

June  30 

COOOOO 

. 

304 


Dr. 


DEPOSITORS. 


Cr.      2 


1867. 

1867. 

• 

■ 

Jan. 

IC 

Cash 

1 

7900 

Jan. 

IC 

Cash 

1 

12300 

Feb. 

15 

It 

1 

18600 

Bills  Discounted 

1 

11958 

87 

Mar. 

16 

n 

2 

10300 

Feb. 

15 

Cash 

1 

21164 

Apr. 

15 

II 

2 

8500 

Bills  Discounted 

2 

14267 

60 

May 

1^ 

If 

3 

4903 

75 

Mar. 

^1 

Cash 

2 

6800 

June 

12 

It 

3 

8300 

Bills  Discounted 

2 

7164 

30 

Balan(e                       f 

5 

120352 

91 

Apr. 

15 
14 

Cash 

Bills  Discounted 

2 
2 

51100 
7253 

12 

^^^"^^ 

May 

Cash 

3 

12788 

^^-^'^'^ 

12 

Bills  Discounted 

3 

6062 

30 

^^ 

June 

Cash 

3 

18984 

^^^^'^ 

66 

June 

30 

Bills  Discounted 

3 

9014 

77 

178856 

178856 

66 

Balance 

120352 

91 

FOREIGN  BILLS 


OP  EXCHANGE. 


1867. 
Jan. 
Mar. 
Apr. 
June 


10  Cash, 
16     // 

151     // 
12     // 


1 

1867. 

.1 

1 

44444   44 

Jan. 

12 

2 

2 

22222:  22 

Mar. 

16 

3 

2 

20000 

Apr. 

15 

4 

3 

• 

2000 

June 

12 

88666 

66 

BaringBros.&Co.  No.l 
u  2 

»  3 

//  4 


44444    44 
22222    22 
20000 
2000 


88666!  66 


BILLS 


DISCOUNTED. 


1867. 
Jan. 
Feb. 
Mar. 
Apr. 
May 
June 

10!  Sundries 

151         » 
16;         // 
15         // 
14         // 

12j         // 

1 
2 
2 
2 
3 
3 

12100 
14400 
7200 
7300 
6200 
9200 

1867. 

Feb. 
Mar. 
Apr. 
May 

June 

15 
16 
15 
14 

30 

Cash 

// 
// 
Balance                        f 

1 
2 
2 
3 
5 

7900 

18600 

7200 

5700 

17000 

56400 

56400 

June 

3(^  Balance 

17000 

' 

BANK 


FURNITURE. 


Jan. 


10  Cash 


1 

600 

305 


3      Dr. 


DISCOUNT 


& 


INTEREST. 


Cr. 


1867.      , 

June   30  [Profit  &  Loss 


f    $       18724    78 


18724 


;s 


Jec. 

1867. 

Tan. 
Feb. 
I^ar. 
Apr. 


pash 


iTune  ]|2 


Bills  Discounted 

//  // 

If  If 

If  If 

Cash 

Bills  Discounted 
Cash 
Bills  Discounted 


L 

38  5 

L 

89  I 

I 

C6  4 

I 

36 

I 

S4:      g 

J 

18000 

5 

87  ^ 

J 

204 

J 

167 

18724" 

: 

EXPENSE 


ACCOUNT. 


1866. 

Dec. 

1867. 

Apr.    15 


31  bash 


L 

2 

200 
2975 

1867. 

Tune  2 

i 

3175 

Profit  &  Loss 


f    5 


EXCHANGE 


ACCOUNT. 


1.  10 !( 


1867. 

Jan.  10  'Cash 

Feb.  15      // 

Mar.  16      // 

Apr.  15      // 

May  14      // 

June  12      // 

30  Profit  &  Lost 


f    ) 


2222  22 

116 

1189  111 
1290 

62  i 

218  i 

4131  ^4 


9228 


1867.    J       I    ^ 

Jan.    to  Bills  Discounted 

Feb.   15  Cash 

I  Bills  Discounted 

Apr.  15  Cash 

Bills  Discounted 
May  14  Cash 

Bills  Discounted 
^une  12  Cash 

Bills  Discounted 


L 

52 

L 

I   136  I 

2 

66 

2 

2666  ( 

I 

1   12  i 

J 

1  4112  i 

3 

'        50  ' 

3 

2116 

J 

1   18 

9228  i 

CIRCULATION 


1867. 

Apr. 

June 


15 

30 


Balance 


5 


500 

479500 


480000 


ACCOUNT. 


1867.  J 

Jan.  10  Cash 

7eb.  i5 

Mar.  16 


June  30  iBalance 


306 


L 
I 
I 

160000 

S3200O 

88000 

480000 

479500 

1 

Dr.       iron  city 


1867. 

Feb. 
Mar. 
May 
June 


::5  Cash 

:.6     II 

-.A      II 

:2     // 


(Pittsburgh.)  NATIONAL  BANK.    Cn.    4 


June  ;}0  'Balance 


1867. 

1 

3564  ' 

Ian. 

.0 

2 

1782 

Mar.  ] 

.6  1 

3 

1980 

May  : 

.5 

3 

2772 

4 

June 

30 

10098 

5896 

Protest 
Balance 


1 

1000 

2 

1200 

2 

2000 

5 

2 

5 

5896 

10098 

FIRST  NATIONAL       (Chicago.) 


1867. 

Jan.  10 
Feb.  15 
Mar.  16 
June   12 

30 


Cash 
II 
II 
II 

Balance 


^867. 

1 

500 

Ian.    ] 

0 

1 

792 

Siar.  ] 

A.pr.   ] 

6 

2 

1188 

5 

3 

2970 

May  ] 

4 

5 

8550 

Tune  i 

50 

14000 

Cash 


BANK. 


Balance 


1 

2 
2 
3 

1500 
1600   j 
4000 
6900 

140DO 

8550 

FIRST  NATIONAL    (New  Orleans.) 


:•]< 


Jan 

Feb 
Mar. 

June 


0  Cash 


15 
16 

30 


II 
II 

Balance 


1000 
3528 
2352 

2820 


9700 


1867. 

Jan. 
Mar.  16 
A.pr.  15 


10  Cash 
II 


Tune  oO 


BANK. 


Balance 


L 

50O 

2 

1200 

2 

8000 

9700 

2820 

BARING 


(London.) 


BROS.  &  CO. 


L 


1867.  J 

Jan.  12  Foreign  Bill, 

Mar.  16  j      //         // 

Apr.  15         //         II 

June  12         II         II 


No.  1 
2 
3 
4 


1  44444  44  ' 

2  22222  22 
20000 

2000 


June  30  Balance 


88666    36 


1996   49 


tl867.  I 

.  l5  Cash, 

ay  14  tt 

Tune  12  if 


Apr. 


No.  1 

2 

for  No.  3  ret'd. 

Balance  f 


26666  67 
40000 
20003  60 

199G  j  4) 


88666  )6 


BANK  OF 

(Montreal,  Canada.)        MONTREAL. 

1867. 
May    14  Cash 

J 

3564 

! 

\ 

FIRST  NATIONAL 

(Boston.)                   BANK. 

1867.      ' 

May    14  Cash 

J 

2394 

i 

|l867. 

:^ay  ] 

4   Cash 

\ 

2394 

r    j 

ao7 


5 

Db 

PROFIT 

' 

& 

LOSS. 

Cr. 

1867. 

June 

30 

Expense                     f 
Dividend  No.  1 
Surplus  Capital 

3 
5 
6 

•    3175 

18000 

3681 

_12 
12 

1867. 
June 

12 
30 

Cash 

Discount  &  Interest    f 

Exchange 

31 
3 
3 

!       2000 

18724 

__-4131 

1     24856 

78 
34 

24856 

12 

1 

DIVIDEND 


No.  1. 


1867. 

June 


30 


Profit  &  Loss 


5       18000 


SURPLUS 


CAPITAL. 


1867. 

June 


30  Profit  &  Loss 


36811  12 


BALANCE 


ACCOUNT. 


1867. 

June 


3C  Cash 

!  U.S.  Bonds 
;   Bills  Discounted 
Bank  Furniture 
Bank  of  Montreal 
i  Baring  Bros.  &  Co. 
Iron  City  Nat.  Bank 


603847 

600000 

17000 

600 

3564 

1996 

5896 


1232904 


1867. 
June 


30 


Capital  Stock  f 

Depositors 

Circulation 

1st  Nat.  Bk.  N.  Orleans 

Ist  Nat.  Bk.  Chicago 

Dividend  No.  1 

Surplus  Capital 


600000 

120352    91 

479500 

2820 

8550 

18000 

S681   12 

1232904 I  03 


308 


DIVIDEND  BOOK,  CITY  NATIONAL  BANK. 

JDiyidend  Xo.  1,  Three  per  cent.,  declared  June  30,  1867. 


Name. 

No.  of 
Shares. 

Amount 

Date. 

BeceiTcd  Paymeut. 

Archer,  W.  B. 

2000 

6000 

• 

Baker,  J.  C. 

100 

300 

Barclay,  Hope  &  Co. 

300 

900 

Banks,  Eobert 

600 

1800 

Cox,  J.  W. 

100 

300 

Compton,  J.  B. 

20 

60 

Duff,  Wm.  H. 

100 

300 

Duff,  P. 

100 

300 

Duncan,  Geo.  B. 

30 

90 

Harper,  James 

600 

1800 

Hay,  Wm. 

200 

600 

Irvin,  Bichard,  &  Co. 

100 

300 

Lenox,  Harriet 

50 

150 

Lenox,  Bobert 

100 

300 

Mitchell,  Thos. 

600 

1500 

Major,  Wm. 

300 

900 

Boot,  B.  C. 

100 

300 

Smith,  T.  B. 

100 

300 

Ward,  John 

500 

1500 

Warren,  Samuel 

100 

300 

6000 

18000 

1.  When  a  stockholder  calls  for  his  dividend,  the  book-keeper  fills  a  check  for  the 
amount,  as  follows : —  • 


Eitj  Jiati@aml  lamk^ 


\illicbm  ^.  JItgJigt,  Esq.,  t>i, 


Six    QlJhGULSCbTld 

and  chatae   zUov-taeyid 


M'. 


.  y. 


TOO 


J.  (Pa-rTceT, 

General  Book-keeper. 


The  date  is  then  inserted  in  the  ''date"  column  above,  and  the  drawer  of  the  dividend  in- 
serts his  signature  in  the  '^  Beceived  Payment"  column,  opposite  the  amount  of  his  dividend. 

2.  Dividend  Checks  are  charged  to  the  Dividend  Account,  in  the  same  manner  that  De- 
positors' Checks  are  charged  to  individuals.  When  all  the  dividends  are  paid,  "Dividend 
No.  1,"  in  the  Ledger,  will  be  balanced. 

309 


B 

p; 
O 

O 

iz; 


o 

M 


O 

iz; 

OQ 


I 

M 


O 

CO 

O 
Izj 

P 

iz; 


, 

,_, 

(M 

CO 

,1 

j 

Ci 

rH 

0 

j 

: 

o 

(M 

o 

0 

0 

r-* 

0 

3^~ 

,  1 

o 

to 

(M 

»o 

0 

DO 

0 

:| 

o 

CO 

00 

».o 

0 

0 

lO 

§ 

o 

o 

(M 

CO 

00 

CO 

05 

o 

(M 

1—i 

CO 

o> 

1 
i 

o 

1— t 

'<* 

rH 
1-t 

1 

i 
1 

1 
1 

i 

OQ 

0 
0 

0 

0 

§ 

0 

\ 

\ 

i 

a 

\ 

as 

\ 

P4 

^ 

\ 

1 

o 

1 

\ 

» 

^ 

.^ 

\ 

< 

4 

p 

IB 

r-i 

3 

P 
02 

\ 

\ 

M 

'rt 

6 

> 

0 

\ 

■ 

1 

o 

2 

CO 

1 

2 

o 

1 

o 

>2 

a: 

'Ph 

CO 

1 

'p 

0 

p 
0 

\ 

. 

S^ 

o 

5: 

S 

.-3 

0 

\ 

o 

p 

s 

ft 

CQ 

0 

•^ 

\ 

s 

S    II 

0    II 

o 

o 

o 

-^ 

co- 

CO 

b- 

^ 

! 

o 

o 

o 

CO 

os 

Oi 

-f 

0 

1 

o 

o 

o 

to 

Ci 

00 

CO 

Oi 

I 

o 

Ir- 

CO 

tH 

0 

CO 

C^l 

1 

o 

r-t 

0 

0 

o 

• 

10 

"^ 

•+< 

j 

0 

iq 

1 

0 

t-^ 

0 

t^ 

0 

' 

0 

^ 

0 

^ 

0 

0 

00 

0 

00 

0 

0 

CO 

0 

CO 

0 

i 
i 

' 

(M 

(M 

CO 
rH 

0 

CO 

^ 

m 

^ 

i 

is 

ft 

p 

i 

ri*r 

rP 

P 
0 

1 
i 
1 

1 

1 

a 

2 

.4^ 

6 

15 
p 
0 

m 
0 

rP 

1 

-2 

0 

J?; 

1 

§ 

o 

'a 

13 

0 

i 
ft 

^ 

^ 

0 
P 

0 

1 

1 

1 
1 

W 

ft 

fe 

0 

fcO 

0 

c3 

P 

p 
0 

1 
1 

CQ 

^ 

P 

P 

p 

p 

en 

-2 

p 

0 

s 

1 

• 

r^ 

rt 

c3 

rt 

2 

t— ( 

0 

'o 

s 

0 

1 

1 

tD 

pq 

W 

pq 

ft 

12; 

0 

H 

h^ 

1 

1 

310 


STA-ISTDINa    LEDQER, 
RICHARD   IRVIN  &  .CO. 


Date. 

Payable  by. 

As 
discounter. 

As  payer. 

As 
endorser. 

Due. 

Mem. 

1866. 

Dec. 
Oct. 

1867. 

June 

14 

10 

J.  W.  Loring 
Hay  &  Wood 

R.  Banks 

3000 

2400 

4000 

» 

1867. 

Mar. 
Oct. 

17 
11 

13 

Paid 
II 

LYON  &  HAVEN. 

1866. 

Dec. 

\i 

Bateman  &  Hill 

1600 

• 

1867. 

Feb. 

11 

Paid 

1867. 

Feb. 

11 
1^ 

i 

J.  Morton 
J.  Kane 

1600 

1200 

Mar. 
May 

1( 
1^ 

Protested 

1.  Some  call  this  the  "  Blue  Book."  The  form  and  two  ilUistrations  which  we  give  will  fully  ex- 
plain its  use  and  importance  to  the  President  and  Directors.  In  business  it  is  indexed,  which  enables 
them  to  refer  to  it  and  see  at  once  what  every  borrower  is  liable  for  as  promisor  or  endorser. 

2.  The  entries  are  made  from  the  Discount  Book  as  the  notes  are  entered  on  that  book. 


REQISTER    OF   STOCKS. 


Purchased. 

j          Due. 

156T. 

Jan'y 

2 

i      1881. 

Feb. 

25 

Jan'y 

.    2 

1881. 

Feb. 

25 

Jpn'y 

.10 

1881. 

Feb. 

25 

Feb. 

15 

1881. 

Feb. 

I 

1 
1 

Description. 


100  Bonds  U.S.  5/20s  of  $1000) 
each,  3d  Series,  Nos.  19001  to  V 
19100  3 


100  Bonds  U.S.  5/20S  of  $1000) 
each,  4tli  Series,  Nos.  1201  to  V 
1300  3 


300  Bonds  U.S.  5/20s  of  $1000") 
each,  4th  Series,  Nos.  20001  to  \ 
20300  3 


100  Bonds  U.S.  5/20s  of  $1000 
each,  4th  Series,  Nos.  30001 
to  30100 


100000 


100000 


300000 


100000 


Interest  is 
due. 


May  1 

and 
Nov.  1 


May  1 
and 

Nov.  1 


May  1 

and 

Nov.  1 


May  1 

and 
Nov.  1 


Bemarkfl. 


This  book  records  all  stocks  and  bonds  the  property  of  the  bank,  and  when  the  interest  is  payable. 

311  4 


QUESTIONS  FOR  EXAMINATION  ON  NATIONAL  BANK  ACCOUNTS. 

1.  When  is  the  General  Cash  Book  a  book  of  original  entry?   (N.  1,  p.  247.) 

2.  What  is  it  made  up  from?  (N.  1,  p.  247.) 

3.  What  should  its  balance  agree  with  ?  (N.  1,  p.  247.) 

4.  Do  banks  generally  keep  a  Journal  ?  (N.  1,  p.  253.) 

5.  When  it  is  kept,  what  book  receives  all  its  entries  from  it?  (N.  1,  p.  253.) 

6.  What  does  the  Stock  Ledger  record  ?  (N.  1,  p.  257.) 

7.  Where  are  its  entries  first  obtained?  (N.  1,  p.  257.) 

8.  Upon  what  book  are  the  transfer  entries  first  recorded?  (N.  1,  p.  257.; 

9!  What  must  the  aggregate  credits  of  the  Stock  Ledger  agree  with?  (N.  2/p.  257.) 

10.  Why  are  its  accounts  kept  in  alphabetical  order?  (N.  3,  p.  257.) 

11.  Where  do  the  amounts  of  the  Receiving  Teller's  Cash  Book  pass  when  a  General  Cash 

Book  is  kept?  (N.  1,  p.  2,61.) 

12.  When  no  General  Cash  Book  or  Journal  is  kept,  where  are  the  contents  of  this  book 

posted?  (N.  1,  p.  261.) 

13.  What  is  the  use  of  the  Signature  Book  ?  (N.  1,  p.  268.) 

14.  Who  should  witness  the  signatures?  (N.  1,  p.  268.) 

15.  Where  is  the  balance  of  Cash  on  hand  found  when  no  General  Cash  Book  is  kept? 

(N.  1,  p.  269.) 

16.  How  can  a  Certificate  of  Deposit  be  negotiated?  (N.  1,  p.  274.) 

17.  What  is  the  use  of  the  Ofiering  Book?  (N.  1,  p.  275.) 

18.  Where  are  the  Accepted  Notes  and  Bills  entered?  (N.  l,,p.  275.) 

19.  What  is  done  with  Rejected  Notes  and  Bills?  (N.  1,  p.  275.) 

20.  What  is  done  with  Discounted  Paper  when  protested?  (N.  1,  p.  278.) 

21.  What  is  done  with  Protested  Collection  Paper?  (N.  2,  p.  282.) 

22.  Where  do  we  enter  all  paper  remitted  for  collection?  (N.  2,  p.  290.) 

23.  Where  do  we  enter  Discounted  Paper  when  collected  ?  (N.  3,  p.  290.) 

24.  Where  do  we  enter  collections  when  paid  ?  (N.  3,  p.  290.) 

25.  What  do  we  record  in  the  Foreign  Bill  Book  ?  (N.  1,  p.  280.) 

26.  Why  not  enter  them  on  the  Discount  Book,  as  we  do  all  other  paper  belonging  to  the 

bank  ?  (N.  1,  p.  280.) 

27.  Where  are  all  Notes  and  Bills  entered  when  received  for  collection  ?  (N.  1   and  2. 

p.  287.) 

28.  What  is  the  Tickler  used  for?  (N.  1,  p.  293.) 

29.  What  accounts  are  kept  in  the  Depositors'  Ledger?  (N.  1,  p.  297.) 

30.  When  are  they  closed?  (N.  1,  p.  297.) 

31.  What  must  the  aggregate  balances  of  this  Ledger  agree  with?  (N.  2,  p.  297.) 

32.  How  are  overdrawn  balances  indicated?  (N.  1,  p.  301.) 

33.  What  Ledger  exhibits  the  results  of  the  business?  (N.  1,  p.  303.) 

.34.  What  book  are  the  Monthly  and   Semi-monthly  Statements  made  from  ?  (N.  2,  p 
303.) 

35.  What  account  do  we  debit  for  the  Dividend  Checks  ?  TN.  2,  p.  309.) 

36.  How  will  the  account  ''Dividend  No.  1"  stand  when  all  are  paid?  (N.  2,  p.  309.) 


312 


DUFF'S  BOOK-KEEPING. 

EAIL   ROAD   ACCOUNTS. 

JANUARY,  1867. 


313 


REMARKS. 

The  following  set  of  Rail  Iload  accounts  illustrates  in  a  condensed  form  tlie  construction 
and  equipment  of  the  road,  the  commencement  of  its  operations,  and  the  declaration  of  the 
first  dividend.  Part  of  the  earnings  are  carried  to  credit  of  the  Stock,  part  to  the  DiTi- 
DEND,  and  part  to  the  Surplus  Capital. 

The  forms  of  Manifests,  Bills  of  Lading,  &c.  are  among  the  best  in  use ;  but  Eail  Eoad 
and  Express  Companies  vary  all  these  forms  to  adapt  them  to  changes  in  business. 


814 


RAIL  EO AD  ACCOUNTS. 

CONSTRUCTION  AND  EQUIPMENT  DAY  BOOK, 

PENNSYLVANIA  RAIL  ROAD, 

JANUARY,  1867. 

1.  This  book  is  ruled  with  a  date  and  vouclier  column  on  the  left:  the  next  two  are  for 
the  titles  c»f  the  account  and  the  items  of  expenditure.  To  the  right  of  these  are  eleven 
money  columns,  each  of  which  has  its  representative  account  in  the  General  Ledger. 
Compare  and  see. 

2.  The  figures  in  the  Voucher  column  are  the  numbers  which  are  endorsed  upon  them  as 
they  are  filed  away  for  future  reference. 

3.  When  the  footings  are  brought  forward  to  the  end  of  the  month,  bring  them  under 
the  amount  in  the  Depot  column  on  the  left.  From  the  aggregate  footing  make  the  Jour- 
nal entry.     See  Journal  entry  of  January  31. 

4.  The  Incidentals  should  be  designated  "  Construction  Incidentals,"  in  the  Journal,  as 
there  is  another  account  of  the  same  name  in  Operating  Expenditures. 

5.  The  entries  in  this  book  are  made  from  the  vouchers,  and  are,  as  the  Journal  entry 
indicates,  cash  payments. 


315 


CONSTKUCTION  AND  EQUIPMENT, 


Date. 


Jan. 


21 


22 


24 


r 


Surveying 
Land 

Incidental  Exps 
Grading 


What  Account. 


Depots 

Road  Building 
Bridging 
8  Tunneling 
Locomotives 

do. 
Cars 
Fencing 

Incidental  Exps. 
^  do. 
14  'Fencing 
5  Cars 
[16  iDepots 

(17  JRoad  Building 

18  :Lands 

19  iSurveying 

20  Bridging 
Depots 


26 


Grading 


23  Incidental  Exps. 

24  {Bridging 

25  jTunneling  • 

26  j  Grading  _ 

27  jLocomotives 

28  Surveying 
29iCars 
30iLands 

31  iRoad  Building 

321  Fencing 
33  Depots 


Incidental  Exps. 

do. 
Depots 

Cars 


For  vliat  paid. 


E.  H.  Heastings  1  mo.'s  Salary  to  Jan.  1st 
J.  Cartwriglit,  for  Eight  of  Way,  per  Deed  M'ch  4,  1866 
W.  S.  Haven,  for  Blank  Books 

Jacob  Eing,  Excavating  21000  yds.  @  10,<*  $2100 

Less  20%  retained      _42tt 
Passal  and  Hay,  building  Freight  Depot  at  Harrisburg 
Knap,  Ward  &  Co.,  for  E.E.  Iron 
Carpenter  &  Co.,  Bridging  Wood  Eun,  per  Contract 
Hall&Oxley,  for  Tunneling  Bills  Hill,   //  // 

Pillow  &  Lens,  for  Locomotive  and  Tender  "  Locomotive" 

//  I!        I!  I!  II         II       "Driver" 

Kirk  &  Ehodes,  for  5  Freight  Cars,  @  $500  each 
Burns  &  Shell,  for  Fencing  350  Eods,  @  $1.00 
H.  Greeley,  for  Advertising 
J.  G.  Bennett,  // 

G.  Wood,  for  Fencing  160  Eods,  @  $1.00 
Kirk  and  Ehodes,  for  3  Passenger  Cars,  at  $2000  each 
J.  Burchinell,  for  Freight  and  Passenger  Depot  at  Altoona, 

per  Contract 
E.  Driver,  Laborers'  Pay-Eoll  for  Dec.  1866 
Adam  Oaks,  for  40  Acres,  per  Deed  Jan.  14,  1867 
W.  Maxwell's  Traveling  Expenses 
Oliver  Birch,  for  9000  ft.  Oak  Lumber,  @,  20/ 
Boyd  &  Murdoch,  for  Freight  Depots  at  Pittsburgh,  per 

Contract 
Excavating  on  Section  14,  4000  yds.,  @  10 
//  //    •  15,  3000    //      @  20 

7  II       16,2500    //    ,@20 


Depoti. 


6000 


760U 


9400 


$400 
600 

$1500 
300 


Less  20%  retained. 
Telegraphing  for  one  month 
F.  Freeman,  Bridging  Eed  Eun,  Sec.  31 

Piper  &  Wood,  Tunneling  Coal  Hill,      //    27 
Murphy  &  Hill,  Grading  Eoads  Hill,      //    21 
Sterling  &  Brown,  for  Locomotive  and  Tender  "Velocity" 
J.  Camp,  4  mos.'  Salary  to  date 

Painter  &  Carpenter,  for  2  Pass.  Cars,  @  $2200,  per  Contract 
E.  Stone,  for  Eight  of  Way,100  ft.wide,  per  Deed  Jan.  23,1867 
Freight  &  Duty  on  E.E.  Iron  received  per  Ship  from  Li- 
verpool 
Samuel  Graves,  for  1600  Eods,  @  75/ 
J.  &  A.  Patterson,  for  Building  Depot  at  Pittsburgh,  per 

Contract 
W.  S.  Haven,  for  Binding  and  Stationery 
Daily  Commercial,  for  Advertising  to  date 
Carpenter  &  Co.,  for  Building  New  Office  at  Pittstr.rgh  Pas- 
senger Depot 
Kirk  &  Ehodes,  6  Cars,  @  $400,  per  Contract 

Amounts  carried  forward 


1300 


270 


24570 


316 


JANUARY,  1867. 


SoadBnildiiig 


440C 


150( 


Laids. 


9000  235C 


70C 


80C 


85C 


Biirr«yiiig. 


100 


80 


8C 


26C 


Grading. 


168C 


1200 


17C 


3050 


Bridging. 


130C 


1800 


4900 


8000 


Tunnelling. 


3800 


4400 


8200 


Iccomotires. 


7000 
7000 


20600 


Can. 


Fendng. 


2500 


6000 


4400 


2400 


15300 


Incidental. 


130 


350 
160 


40 
35 


65 


1200 


1710 


70 


670 


317 


'2 


CONSTRUCTION  AND  EQUIPMENT, 


Date.      "I 


Jan. 


What  Account. 


6  88 
39 
40 

a 


]  Jands 
Briddng 

do. 
(trading 


12  '.  Liands 


28  43     do. 

I     44  Road  Building 

45  Incidental  Exps. 

|46  i  do. 

47  purveying 

48  !       do. 

49  Lands 

31  50  Eoad  Building 

51  do. 

52  Grading 

53  Bridging 

54  Locomotives 

55  Cars 

56  incidental  Exps. 
^7  ;        ^  do. 

^'encing 
59  pepots 

50  Surveying 


For  what  paid. 


.  Amounts  bro't  forward, 

Pd.  J.  Banks,  for  Procuring  Right  of  Way 


Depots. 


24570 


Hiram  Hill,  for  Material  delivered  on  Sec.  1 

W.  Stone,  for  Bridging  //        1 

R.  Baker  &  Sons,  Excavating,  as  follows, — viz. : 

31000  yds.  on  Sec.  18,  19,  20,  @  10/ 

1500     I'  II      18, 19,  20,  @  20/ 


$3100 

300 

3400 

Less  20%  retained  680 

R.  Banks,  for  Right  of  Way  100  feet  wide,  per  Deed  May  77 

1866. 
Commission  of  Appraisement,  for  services 
for  Switch  Ties,  80,  @  20 
J.  K.  Smith,  1  mo.'s  Salary  to  date 
R.  Roberts,    1     //        do.  "         do. 
W.  Morris,    3     //        do.  do. 

R.  Manley,    3     '/        do.  do. 

J.  Wood,  Right  of  Way  100  ft.  wide,  per  Deed  May  7 

1866 
Freight  and  Duties  on  R.R.  Iron  from  Liverpool 
Driver's  Pay-Roll  for  Jan. 
A.  Wood,  Grading  Farmer's  Hill 
D.  Haven,  for  Bridging  Wood  Creek 
Archer  &  Co.,  for  Locomotive  and  Tender  "Ajax" 
Kirk  &  Rhodes,  6  Passenger  Cars,  @  $2200 
Team  Hire  this  month 

"Morning  Post"  for  Notice  to  Stockholders 
Robert  Hall,  for  1600  Rods,  @  $1.00 
Carpenter  &  Co.,  for  Building  Freigl^t  Depot  at  Pittsburgh 
R.  Patterson,  Horse  Hire 


Total  amount  pd.  for  Depots 


Journal  1. 


// 

Road  Building 

II 

Lands 

II 

Surveying 

II 

Grading 

n 

Bridging 

II 

Tunneling 

» 

Locomotives 

// 

Cars 

II 

Fencing    • 

>i 

Incidentals 

Total 

111500 

1 136070 

1 120100 

I    6090 

!i  1100 

!!  8100 

! 14800 

8200 

27600 

28500 

3310 

1200 

1155070 


318 


JANUARY,  1867, 


Koad  Bailding. 
9000 


laids. 


2350 
110 


IflrrejiBg 


260 


Grading. 


3050 


2720 


16 


8484 
2600 


1300 
440 


1890 


450 
300 


2330 


20100 


6090 


90 
1100 


8100 


Bridging. 


8000 

460 
940 


5400 


14800 


Tanneling. 
8200 


oeomotires. 


8200 


20600 


(000 


27600 


Can. 
15300 


Feneingr 


1710 


BcidentaL 
670 


160 


13200 


L600 


28500 


11310 


230 
70 


1200 


319 


3 


CONSTRUCTION  AND  EQUIPMENT, 


Date. 


1867. 

Feb. 


21 


What  Acconnt. 


For  \vhat  paid. 


61  Incidental  Exps. 
€5^  Depots 
63  Road  Building 
€4  Lands 

65  Surveying 

66  Depots 

67  Grading 

68  Bridging 

69  Tunneling 

70  Locomotives 
it\         do. 

//J  do. 

71  Depots 

72  do. 

73  Road  Building 

74  Bridging 
"75  Cars 

ir  do. 
76  Fencing 
7'iij  Incidental  Exps. 


Pd.  Dispatch,  for  Advertising 

//  J.  &  A.  Patterson,  Building  Depot  at  East  Liberty 

//  R.  Rf  Spike  Co.,  for  bill  of  Spikes 

I'  Z.  Wainwright,  per  Deed  May  7,  1866 

I'  W.  Moore  and  Assistants,  to  date 

If  R.  Shrum,  Building  Depot  at  Greensburg 

//  J.  Dignam,  for  Grading  93750  yds.  @  10                  $937^ 

Less  20  fo  retained         1871 

II  Cox  &  Co.,  Bridging  Turtle  Creek 

//  Ames  &  Co.,  for  Tunnel  at  Greensburg 

II  Baldwin  &  Co.,  for  Locomotive  and  Tender  "  Kiskiminitas" 

//  //            //        //            //             //         //      "Allegheny" 

//  II           II        II   ■        II            II         If      "Altoona" 

//  D.  Wood,  Building  Depot  at  Johnstown 

//  S.  Maple        //             //      '/   Lancaster 

n  Laborers'  Pay-Roll  for  Feb. 

n  for  Bridges  from  Greensburg  to  Altoona,  per  Contract 

If  Kirk  &  Rhodes,  for  8  Passenger  Cars,  @  $2000 

//  //             //          // ,  3  Baggage       u      @,      500 

//  J.  Post,  for  700  Rods,  @  $1.00 

'/  J.  Daub,  painting  signboards,  per  Contract 

Total  amount  pd.  for  Depots 


// 

Road  Building 

II 

Lands 

II 

Surveying 

II 

Grading 

II 

Bridging 

II 

Tui;ineling 

n 

Locomotives 

H 

Cars 

II 

Fencing 

II 

Incidentals 

Journal  2. 

Total 

Depots, 


5000 


8000 


10000 
800C 


3100( 

18000 

1100 

90Q 

7500 

148O0 

8206 

22200 

17500 

700 

_  800 

122700 

i 


S20 


FEBRUARY,  1867. 


Boail  Building 


4500 


Lands. 


1100 


SorTeying. 


Gradins 


900 


7500 


13500 


18000 


1100 


900 


7500 


Bridging 


800 


14000 


14800 


Tunneling. 


8200 


8200 


Locomotives. 


7000 
8000 
7200 


22200 


Can. 


Fencing. 


16000 
1500 


17500 


Incidental 


270 


700 
700 


530 
800 


FORM    OF   A   LOCAL    BILL    OF   LADING. 


C.  A.  CARPENTER,  FREIGHT  AGENT,  PITTSBURGH,  PA. 

Keceived,  Pittsburgh, /S&   ,  of 

f he  following  packages  3  in  apparent  good  order,  marked  as  per  margin,  n>hich  tre  promise  to  deliver 
in  like  good  order,  the  incidental  dangers  of  the  Siail  Hoad,  Fire  in  Cars  and  in  Stations.,  excepted, 

at Station,  ilie  Off  tier  or  Consignee  paying  Freight  and  Charges,  in 

par  funds,  as  per  Tariff'  Spates. 

It  Is  nsrecd,  and  Is  part  of  the  Coiisidei-ation  of  this  Contrnet: 

1.  That  all  goods  received  for  transportation  shall  be  properly  packed,  and  distinctly  marked  with  the  name  of  the  consignee  and  the  Station 
where  and  to  whom  cousigaed. 

2.  That  the  Pennsylvania  Rail  Road  Company  shall  not  be  responsible  for  the  melting  of  ice;  decay  or  injury  to  perishable  articles  from  heat  or 
cold  ;  or  for  any  loss,  injury,  or  damage  from  the  dangers  of  rail  road  transportation,  explosions,  fire  in  stores,  depots,  or  in  transit,  leakage,  breakage, 
theft,  or  from  any  cause  whatever,  unless  the  same  be  proved  to  have  occurred  from  the  fraud  or  gross  negligence  of  said  Company  or  its  servants  ; 
nor  liable  for  any  damage  to  glass  or  fragile  articles,  unless  herein  specially  insured.  And  when  goods  are  intrusted  to  any  other  Company  or  person 
(which  said  Pennsylvania  Rail  Road  Company  is  hereby  authorized  to  do),  such  Company  or  person  so  selected  shall  be  regarded  exclusively  as  the 
Agent  of  the  owner,  and  as  such  alone  liable;  'and  the  Pennsylvania  Rail  Road  Company  shall  not  in  any  event  be  responsible  for  the  negligence  or 
non-performance  of  any  such  Company  or  person ;  nor  in  any  event  shall  the  Pennsylvania  Rail  Road  Company  be  liable  for  any  loss  or  damage 
unless  the  claim  therefor  shall  be  presented  in  writing  to  the  Agent  of  said  Company  within  five  days  after  the  time  when  said  property  has  or  ought 
to  have  been  delivered.  The  goods  transported  shall  be  subject  to  a  lien— and  may  also  be  retained — for  all  arrearages  of  freight  and  charges  due  on 
other  goods  by  the  same  consignee  or  owner. 

Freight  to  be  paid  upon  the  weight  of  goods  as  ascertained  by  the  Company's  scales. 

3.  Storage  will  be  charged  on  goods  allowed  to  remain  over  twenty-four  hours  in  the  Depots  or  Warehouses  of  said  Company, 

4.  All  articles  coopered  will  be  charged  therewith. 

5.  Gun-Powder,  Gun-Cotton,  Friction  Matches,  and  like  combustibles,  are  not  received  or  transported  under  this  contract. 

6.  Goods  at  private  turnouts  shall  be  at  the  owners  risk  until  attached  to,  and  until  after  they  are  detached  from  the  train. 

7.  All  articles  will  be  at  the  risk  of  the  owners  at  the  several  "  Way  Stations"  and  Platforms  where  Depot  Buildings  have  not  been  established 
by  the  Company,  from  the  moment  such  articles  are  delivered  from  the  cars  as  directed  or  viarked. 

8.  Freight  carried  by  this  Company  must  be  removed  from  the  Station  to  which  it  is  consigned  during  business  hours  on  the  day  of  its  arrival,  or 
It  may  be  stored  at  owner's  risk  and  expense,  and  in  the  event  of  its  destruction  or  damage  from  any  cause  while  in  the  depot  of  the  Company,  it  is 
agreed  that  said  Company  shall  not  be  liable  to  pay  anydamages  therefor. 

•9.  The  responsibility  of  the  Company  under  this  Bill  of  Lading  to  commence  upon  the  shipment  of  the  goods  from  this  Station,  and  to  terminate 
when  unloaded  from  the  cars. 


I^-A^RKIS. 


-A.I?,TIOLES. 


FORM  OF  A  THROUGH  BILL  OF  LADING. 


0.  A.  CARPENTER,  Freight  Agent,  Pittsburgh.  Pa.  S.  B.  KINGSTON,  Jr.,  Freight  Agent,  Philadelphia,  ?a. 

WILLIAM  BEOWN,  Agent,  N.  0.  R.  W.  Co.,  Baltimore. 

H.   H.   HOUSTON,  GENERAL   FREICHT   ACENT,   PHILADELPHIA. 

Keceived,  Pittsburgh, /S&   ,  of 

the  folloH'ing packages,  in  apparent  good  order,  marked  as  per  margin,  to  be  transported  to 

and  delivered  at  the  FREIGHT  STATION  at 

TJIFOZSr    THE    iFOLLO^vVIIsra-    002<riDITI01TS. 

OlIT^The  Owner  or  Consignee  to  pay  freight  as  per  specified  rates,  and  charges,  in  pak  fiinds,  upon  the  goods  as  they  from  time  to  time  arrive. 

It  is  agreed,  and  is  part  of  the  consideration  of  this  contract,  that  the  Company  will  not  be  responsible  for  leakage  of  Liquids,  breakage  of  Glass 
or  Queensware,  the  injury  or  breakage  of  Looking  Glasses,  Glass  Show  Cases,  Picture  Frames,  Stove  Castings  or  Hollow  Ware,  nor  for  injury  to  the 
bidden  contents  of  Packages,  nor  for  the  loss  in  weight  or  otherwise  of  Grain  or  Coffee  in  bags,  or  Rice  in  tierces,  nor  for  the  decay  of  perishable 
articles,  nor  for  damages  arising  to  any  article  carried  from  the  effects  of  heat  or  cold,  nor  for  the  loss  of  Nuts  in  bags,  or  of  Lemons  or  Oranges  in 
boxes,  unless  covered  by  canvas,  or  loss  or  damage  to  Goods  occasioned  by  Providential  causes,  or  by  Fire  from  any  cause  whatever,  while  in  transit 
or  at  Stations,  unless  the  additional  charge  of  five  cents  per  one  hundred  pounds  be  added  to  the  following  rates,  in  consideration  of  the  Company 
insuring  the  Goods  safe  to  Philadelphia  or  Baltimore,  against  all  hazard,  by  instructions  of  owners  or  shippers  before  shipping. 

The  Company  will  not  be  responsible  for  damage  on  Tobacco,  unless  it  is  proved  to  have  occurred  during  the  time  of  its  transit  between  Pittsburgh 
and  Baltimore,  or  Philadelphia,  and  of  this,  notice  must  be  given  within  thirty  hours  after  the  arrival  of  the  same. 

Freight  to  be  paid  upon  the  weight  as  ascertained  by  the  Company's  Scales  at  Pittsburgh. 

If  destined  to  any  point  beyond  Philadelphia  or  Baltimore,  the  same  may  be  intrusted  or  delivered  in  the  cars  of  this  Company,  or  otherwise,  to 
any  other  Rail  Road  or  Transportation  Company,  or  Agent:  and  such  Rail  Road  or  Transpoitation  Company,  or  Agent  so  selected,  shall  be  regarded 
exclnsively  as  the  Agent  of  the  owner  or  consignee,  and  shall  be  entitled  to  the  benefits  of  the  Conditions  and  Provisions  of  this,  and  of  such  Bill  of 
Lading  as  they  may  deliver  therefor;  and  the  Pennsylvania  Rail  Road  Company  shall  not  be,  in  any  event,  responsible  for  the  negligence  or  non- 
performance of  any  such  Company  or  Agent,  nor  shall  such  Company  or  Agent  be  liable  for  any  loss  or  injury  except  upon  its  or  their  respective 
routes,  and  while  such  merchandise  is  in  their  respective  custody. 

That  the  Owner  or  Consignee  hereby  assumes  all  risks  from'leakage,  and  loss  by  Fiic,  while  in  transit  or  at  Depots,  or  in  Stations,  or  on  board 
Boats,  from  any  cause  whatever;  and  all  dangers  and  delays  of  Rail  Iload  and  Water  Transportation  between  Pittsburgh  and  point  of  destination  ; 
and  in  any  claim  or  demand,  suit  at  law  or  equity,  against  this  Company  or  Transportation  Company  or  Agent,  for  loss  or  damage  thereby,  this  Bill 
of  Lading  shall  be  deemed  and  taken  as  a  release  in  full  therefor. 

Whatever  responsibility  is  assumed,  under  this  Bill  of  Lading,  shall  begin  when  the  merchandise  is  loaded  into  the  cars  of  the  Company,  and 
cease  when  unloaded  therefrom,  or  intrusted  or  delivered  as  aforesaid,  and  which  it  is  agreed  shall  constitute  a  delivery. 

The  Owner  or  Consignee  will  have  his  or  their  Agent  or  Employees  to  receive  and  remove  the  said  merchandise,  as  the  same  from  time  to  time 
arrives  and  Is  delivered  as  aforesaid;  but  If  not  then  removed,  the  same  will  remain  at  place  of  unloading,  at  the  Owner's  risk,  or  be  removed,  at  tlie 
option  of  the  Company,  to  such  place  of  deposit  as  it  may  select,  at  the  risk  and  cost  of  the  Owner  or  Consignee. 

Said  merchandise  may  be  retained  for  all  arrearages  of  freight  and  charges  due  this  Company  on  other  goods  by  the  same  Consignee  or  Own*>r. 

Nor  shall  any  Company  or  Agent  hereunder  bo  liable,  by  reason  of  any  responsibility  hereby  assumed,  for  any  loss  or  damage  to  such  merchandise, 
unless  the  claim  be  presented  in  writing  at  the  oflTicc  of  the  Agent  at  the  point  receipted  to,  within  ten  days  after  the  time  wlien  the  same  has  been  or 
ought  to  have  been  delivered. 

In  case  of  loss  or  damage  to  any  property  herein  mentioned,  from  such  cause  as  would  render  the  Carriers  liable,  it  is  expressly  agreed  that  they 
shall  have  the  benefit  of  any  insurance  that  may  have  been  or  may  be  eftected  upon,  or  on  account  of  said  property,  and  the  Owner,  Consignee,  and 
Shipper  severally  agree  that  it  shall  be  so  inserted  in  the  policy. 

Notice.— In  accepting  this  Bill  of  Lading,  the  Shipper,  or  other  Agent  of  the  owner  of  the  property  carried,  expressly  accepts  and  agrees  to  all 
its  conditions,  stipulations,  and  exceptions. 

i«a:-A.TiK:s.  -a^rt  ioil.es. 


322 


RAIL  ROAD  ACCOUNTS. 
OPERATING  EXPENDITURES, . 

PENNSYLVANIA    RAIL    EOAD, 

JANUARY,  1867. 

1.  The  headings  of  the  columns  will  sufficiently  explain  the  use  of  this  book. 

2.  Its  ten  money  columns  have  also  their  representatives  in  the  General  Ledger,  which 
will  explain  themselves. — Refer  to  them. 

3.  The  final  footing  at  the  end  of  the  month  is  made  and  Journalized  like  the  last  book. 


323 


1 

OPERATING  EXPENDITURES, 

Date. 

1 
1 

What  Account. 

For  what  paid. 

1867. 

Mar. 

1 

Incidental  Exps. 

Pd.  W.  G.  Johnston  &  Co.,  for  Blanks  and  Stationery 

2 

Track  Repairs 

//    Whitmore,  Wolff,  Duff  &  Co.,  for  Spikes 

3 

Fuel 

//    James  Oak,  for  his  Bill  of  Wood 

4 

Station 

'/    Wm.  Ward,  1  mo.'s  Salary  as  Supt. 

5 

Trains 

"    Pay-Boll  for  Feby. 

6 

Engines 

//    Mitchell,  Stevenson  &  Co.,  for  Castings 

7 

Cars 

//    Kirk  &  Rhodes,  for  Glass 

8 

Station 

'/    W.  Darsie,  1  mo.'s  Salary 

9 

Shop 

//    Craig  &  Co.,  for  3  Stoves 

10 

Buildings 

//    Carpenter  &  Co.,  for  Repairs  to  Pittsburgh  Depot 
//    Childs  &  Co.,  for  5  Bales  1500  lb.  Cotton 

11 

Oil  &  Waste 

12 

Incidental  Exps. 

'/    W.  S.  Haven,  for  Printing  Cards  and  Way  Bills 

13 

Fuel 

//    Darlington  Coal  Co.,  for  400  Tons  Coal,  @  $2.00 

14 

Station 

'/    Salaries  for  Feb'y 

15 

Trains 

'/    Trains  Pay-Roil  for  Feby. 

16 

Shop 

'/    Geo.  Dexter  (Foreman),  Salary  to  date 

17 

do. 

//    Blacksmiths'  Pay-Roil  for  Feby. 

18 

Engines 

•  //    Warden  &  Son,  Cylinder  Head  for  Locomotive  "Driver** 

19 

Cars 

//    Kirk  &  Rhodes,  for  Bill  of  Locks,  &c. 

20 

Track 

II    Bell  &  Ward,  for  New  Switch  at  Altoona 

21 

Buildings 

'/    Boyd  &  Murdoch,  Repairs  to  Office 

22 

Oil  &  Waete 

'/    Fleming_&  Bros.,  Bill  of  Oil 

23 

Incidental  Exps. 

'/    R.  M.  Riddle,  for  Advertising  to  date 

24 

Fuel 

//    J.  A.  Reams'  Bill  of  Wood 

4 

25 

Train 

'/    Brakesman's  Pay-Roll  for  last  month 

26 

do. 

//    Conductor's          //            //              n 

27 

Station 

II    Laborers'             //            //             // 

28 

Shop 

//    Machinists'           n            ii             n 

5 

29 

Station 

II    Watchman's  Wages 

i 

30 

Engines 

//    Craig  &  Co.,  Repairing  Pipe  and  New  Pipe  for  "  Velocity" 

31 

Cars 

'/    Jas.  Sawyer,  for  Oak  Plank 

32 

Incidental  Exps. 

"    Daily  Post,  for  Advertising 

33 

do. 

//    J.  Bailey  &  Co.,       // 

34 

Track 

//    Pay-RoU  for  M'ch  4 

35 

do. 

//      II        II    II        II     6 

i 

36 

Fuel 

'/    J.  Day,  150  Tons  Coal  delivered  at  Johnstown 

37 

Incidental  Exps. 

//    W.  S.  Haven's  Bill  for  Printing  Tickets 

1( 

38 

Oil  &  Waste 

//    F.  Sellers  &  Co.,  for  Oil 

39 

do. 

//    B.  C.  &  J.  H.  Sawyer,  1200  lb.  Grease,  @  8f 

40 

Incidental  Exps, 

//    W.  G.  Johnston  &  Co.,  for  Office  Stationery 

41 

Building 

//    Hugh  Beatty,  for  Painting  Depot  at  Pittsburgh 

1^ 

45 

Cars 

//    E.  Edmunson  &  Co.,  for  Upholstering 

43 

Engines 

//    Paine  &  Co.,  for  New  Spark-Catcher  for  "Ajax" 

1( 

44 

Station 

//    W.  White,  1  mo.'s  Salary  as  Freight  Agent  at  Pittsburgh 

45 

do. 

'/    D.  Hill,        a             II            Passenger  //      //            n 

1^ 

46 

Trains 

II    A.  Black,  1  mo.'s  Salary  as  Freight  Conductor 

IS 

47 

Shop 

//    J.  Woodwell  &  Co.,  for  Tools 

Amounts  carried  forward 

• 

324 


MARCH,  1867. 


Station. 


150 


200 


160 


Shop. 


Trains. 


Engines. 


140 
30 


180 
120 


980 


1660 


45 


80 
420 


940 


560 
440 


1365 


390 
2300 


50 


3650 


190 


60 


150 


130 


530 


Car8. 


30 


170 


190 


110 


500 


Track. 


180 


120 


95 
75 


470 


Buildings. 


826 


80 


220 


180 


480 


)a  k  Waste. 


Fael. 


120 


[neide^^als 


130 


150 


370 


800 


250 


110 


180 


300 


350 
96 


120 
110 


60 
30 


846 


1400 


930 


s 

OPERATING  EXPENDITURES, 

lOate. 

What  Account. 

For  what  paid. 

1867. 

Amounts  bro't  forward 

Mar. 

li 

45 

Sliop 

Pd.  ,T.  Gardiner,  for  Horse  Hire  1  montli 

4f 

Track 

n    Repairs  on  Division  No.  7,  in  Feby. 

w 

do. 

ff         II        II          II         II     9,  //      // 

2( 

5( 

Buildings 

//    Masons'  Bill  at  Philadelphia 

2^ 

51 

Cars 

//    for  14  Water  Coolers,  @  $5 

55 

do. 

II    Wilson  &  Co.,  Bill  of  Lamps  and  Fitting 

2( 

5J 

Trains 

II    Watson's  Salary  as  Passenger  Conductor 

5^ 

do. 

//    Gray's          //       //          "               // 

2: 

5^ 

Incidental  Exps. 

II    H.  Turner,  for  Trunk  Lost 

6( 

do. 

//    Kay  &  Co.,  Freight        // 
//   A.  Bell,  for  Wood 

2{ 

51 

Fuel 

5§ 

Oil  &  Waste 

II    B.  L.  Fahnestock  &  Co.,  for  Oil 

2( 

5S 

Station 

//    Wilson,  Freight  Agent  at  Altoona,  Salary  for  this  month 

60 

do. 

II    Hay,  Passenger      //       //        n            n          "      "         n 

3( 

61 

Shop 

II    G.  Dexter  (Foreman),  Salary  for  this  month 

6^ 

do. 

II    Blacksmiths'  Pay-Eoll  for  this  month 

6^ 

Trains 

II    Brakesman's        //            //             </ 

3: 

6^ 
65 

[  Oil  &  Waste 
Fuel 

//    for  Eags  and  Tallow 

//    Baird  &  Sons,  700  Tons  Coal,  @  $2 

6f 
6^ 

►  Trains 

//    Fireman's  Pay-Eoll  for  this  month 

Shop 

II    Machinist's          //             //           '/ 

6a 

Station 

II    W.  JST.  Davis,  Salary  for  this  month 

6^ 

1  Engines 

n    Machinists  at  Philadelphia 

7C 

>Cars 

II    Warren  &  Lee,  of      // 

7] 

7S 

Track 
!  Buildings 

//    for  New  Bail  on  Sees.  17,  18,  19,  &  24 

II    for  Enlarging  Office  at  Pittsburgh 

//    Secretary  &  Clerks'  Pay-Eoll  at  Philadelphia 

7,- 

1  Station 

Amount  pd.  for  Stations  this  month 

//         //    //    Shop       .//        // 

//         7/    .'/    Trains      n        n 

II         II    II    Engines  //        n 

II         II    II    Cars          //        '/ 

//         //    //    Track      //        // 

//         //    //    Buildings         '/ 

II         II    II    Oil  &  Waste    '/ 

//         //    //    Fuel         //        '/ 

It         II    II    Incidentals       '/ 

^our.  2.  Total  Operating  Expenditures  for  March 

• 

826 


MARCH,  1867. 


Station. 


98(' 


14(1 
11(1 


20(1 


^670 

31(K) 
4305 
528() 
4200 
5100 
440^ 
2160 
1105 
2880 
123() 

3376d 


Shop. 

230(jl 
30 


Traias. 


365(1 


6(1 
6(1 


80 
420 


147^  i 


63(^ 
980 


430il 


5280 


Engines. 


530 


367(1 


420(1 


Can. 


50(1 


60 


447(1. 


5100 


TracL 

47(1 

44(1 
16(1 


333(1 


440(1 


Boiidings. 


48(1 


32(1 


136(1 
216(i 


OU  k  Waste 


84( 


20^: 


61 


1101 


Fael. 


140(1 


heidentals. 
93() 


8(1 


90 
210 


140( 


288(1 


1230 


327 


^ 

^ 


EH 

H 

<} 


<! 
O 

Pi 


0 


^ 


3 


^ 


o 
■>*>> 


-r-t 

§ 


■i 

SI 


no 


Oh 

Ha 
gg 


H 
-<1  . 


2 
*«« 
•o 
a 

i  ^ 


s 

'^4 


EH 


0 

1^ 


^ 


Co 


O 

< 

H 

Ix 

^ 

Ph 

<j 

1 

^ 

o 

<x1 

W 

o 

b 

g 

h 

W 

^ 

i 

M 

EH 

CQ 

fSn 

lil 

" 

0 

^ 

^ 

^ 

e 


IS 

Sri 


1 

1 

a 

< 

1 

H 

a 

i 

1 

1 
S 

1 

i 

1 

d 

328 


EAIL  EOAD  ACCOUNTS. 
OPERATING  RECEIPTS, 

PENNSYLVANIA   EAIL   ROAD, 

JANUARY,  1867. 

1.  The  headings  of  the  columns  of  this  book  fully  explain  their  use.  Its  three  aioney 
columns  have  their  representatives  in  the  General  Ledger. 

2.  There  are  four  columns  used  in  Rail  Road  Accounts;  but,  as  I  cannot  see  any  use  for 
the  fourth  column  for  totals,  I  have  used  only  three  of  them,  bringing  the  aggregate  into 
the  Freight  column  at  the  end  of  the  month,  from  whence  they  are  journalized.  See 
Journal  entry,  March  31st. 


329 


I    OPERATING  RECEIPTS  OF  P.  R.  R.  FOR  MARCH,  1867. 


Date. 


1867. 

Mar. 


Napie. 


n. 


3:. 


Geo.  Brown 
J.  W.  Vann 
Hiram  Fish 
J.  Scott 

^Y.  Wills 

R.  Weed 
J.  Powers 
W.  Ryan 
J.  Hilton 

B.  Ray 

C.  King 
R.  Howe 
U.S.  Mail 

do. 

do. 

do. 

do. 
J.  Powers 
R.  Weed 
W.  Wills 
J.  Scott 
Hiram  Fish 
J.  W.  Vann 
Geo.  Brown 
H.  Lee 
C.  Dickson 
R.  Bill 
J.  Watson 
W.  King 

B.  Hagan 
R.  Weed 
J.  Powers 
W.  Wills 
Geo.  Brown 
J.  Scott 

J.  W.  Vann 
Hiram  Fish 
J.  Watson 
R.  Bill 

C.  Dickson 
B.  Hagan 
W.  King 
U.S.  Mail 


Journal  2. 


station. 


Greensburg 

Blairsville 

Cresson 

Altoona 

Harrisburg 

Lancaster 

Philadelphia 

Conductor 

do. 

dp. 

do. 

do. 
Pittsburgh  to  Philadelphia 
//  Altoona 
//  Greensburg 
//  Lancaster 
//  Harrisburg 
Philadelphia 
Lancaster 
Harrisburg 
Altoona 
Cresson 
Blairsville 
Greensburg 
Pittsburgh 
Philadelphia 
Lancaster 
Pittsburgh 
Harrisburg 
Altoona 
Lancaster 
Philadelphia 
Harrisburg 
Greensburg 
Altoona 
Blairsville 
Cresson 
Pittsburgh 
Lancaster 
Philadelphia 
Altoona 
Harrisburg 
Pittsburgh  to  Johnstown 

Freight 

Passage  | 

U.S.  Mail  I 

Receipts  for  this  montlij 


Freights. 


560 
34d 
18(^ 
760 
860 
640 
970 


22O0 
1890 
186C 
179C 
UK 
137( 
163( 
.215C 


470(i 

630(> 

4970 

177 

186 

130 

1100 


4031(1) 
34092 


3990 
7839 


Passages. 


1900 
700 
240 


712 
680 
518 

670 
530 


Mails 


277C 
263C 
269(1 
254( 
251^1 


140(1 

260 
500 
2590 
261(|l 
247(11 
233(1 
2840 


3409^5 


1460 
34(^ 
490 
71(^ 

80(i 


m 

'399(i 


330 


RAIL  ROAD  ACCOUNTS. 

JOURNAL, 

PENNSYLVANIA  RAIL  ROAD, 

JANUARY,  18C7. 


1.  This  book  serves  for  a  Journal  and  General  Day  Bock.  The  first  three  entries  are 
original,  and  are  first  recorded  in  this  book, 

2.  These  books  are  kept  by  the  Secretary,  who  debits  and  credits  the  Treasurer  for  all 
receipts  and  payments  of  money.  Some  Companies  employ  a  Treasurer,  who,  under 
instructions  from  the  board,  takes  charge  of  all  the  revenues  of  the  Company,  and  pays 
out  all  their  expenditures,  reporting  the  same  to  the  board.  For  some  Companies  the 
banker  is  their  only  Treasurer. 

3.  The  first  entry  in  March,  and  the  second  and  third  entries  on  the  31st,  are  original. 

4.  When  the  Journal  is  posted,  compare  and  check  the  Journal  and  Ledger,  then  take 
off  a  trial  sheet  and  prepare  to  close  the  Ledger,  and  make  a  dividend.  For  this  purpose 
open  the  six  accounts  on  page  6  of  the  Ledger. 

5.  The  four  entries  on  Journal,  page  3,  we  obtain  from  the  Ledger;  but  the  same 
accounts  may  be  closed  on  the  face  of  the  Ledger  without  a  Journal  entry,  as  we  do  in 
Mercantile  Books.     I  have  followed  the  practice  of  Rail  Road  Accountants. 

6.  You  will  see  that  the  Operating  Account  finally  closes  into  Profit  &  Loss  with  a  net 
gain  of  $44,632.  Of  this  the  Directors  divide  5%  on  the  paid-up  Capital  of  $300,000, 
and  place  $20,000  to  the  credit  of  the  Shareholders  on  the  Stock  Ledger.  See  Journal,  p.  4. 
The  surplus  is  carried  to  the  credit  of  Surplus  Capital,  or  Contingent  Fund,  as  it  is  some- 
times called. 

7.  The  Dividend  must  be  carried  to  the  credit  of  the  Dividend  Account;  and  as  the 
stockholders  draw  their  Dividends,  that  account  is  Dr.,  and  Cash,  or  the  Bank  Account,  is 
credited. 

8.  The  entries  for  closing  the  Ledger  and  making  the  Dividend  are  all  made  on  pages  3 
and  4  of  the  Journal,  from  which  they  are  posted  to  the  Stock  and  Greneral  Ledger.  See 
posting  to  Stock  Ledger  from  first  entry  in  the  Journal. 


331 


PITTSBURGH,  January  2,  1867. 


Treasurer,  Dr. 

To  Capital  Stock,  for  1st  Instalment  paid  by  Shareholders 
R.  Fulton       1200  Shares  of  $100  ea.  Cash  10  %  $12000 


T.  Graham  500 
D.  Martin  800 
A.T.HowdenlOOO 
J.  Carver  900 
A.Bowman  1000 
W.  M.  Lyon  1500 
G.R.Duncan  1500 
W.  H.  Duff  600 
R.  Banks       1000 

Shares,  10000 


do 
do 
do 
do 
do 
do 
do 
do 
do 


100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 
100  // 


do 
do 
do 
do 
do 
do 
do 
do 
do 


5000 

8000 
10000 

9000 
10000 
15000 
15000 

6000 
10000 


First  Instalment,  $100000 


Cash,  Dr. 

To  Treasurer,  for  Check 


15. 


31. 


Sundries,  Dr.  To  Bonds  Payable 

Treasurer,  for  n/p,  received  of  W.  Dumas  &  Co.  for  sales 

~  Discount  on  above  sales 


Discount,  for  10 


Sundries,  Dr.  To  Cash 

Paid  for  Construction  &  Equipment  this  month 
Depots 

Road  Building 
Lands 
Surveying 
Grading 
Bridging 
Tunneling 
Locomotives 
Cars 
Fencing 
Construction  Incidentals 


Feb.  1. 


Treasurer,  Dr. 

To  Capital  Stock,  for  2d  Instalment  paid  by  Shareholders 
R.  Fulton       1200  Shares  of  $100  ea.  Cash 


T.  Graham       500  do 

D.  Martin        800  do 

A.T.HowdenlOOO  do 

J.  Carver         900  do 

R.  Banks       1000  do 

A.Bowman  1000  do 

W.  M.  Lyon  1500  do 

G.R.Duncan  1500  do 

W.H.Duff     600  do 

Shares;  10000 


20% 


100  // 
100.// 
100  // 
100  // 
100  V 
100  // 
100  // 
100  // 
100  '/ 


do 
do 
do 
do 
do 
do 
do 
do 
do 


$24000 
10000 
16000 
20000 
18000 
20000 
20000 
30000 
30000 
12000 


100000 


170000 


540000 
60000 


36070 

20100 

6090 

1100 

8100 

14800 

8200 

27600 

28500 

3310 

1200 


200000 


100000 


170000 
600000 

155070 


Second  Instalment,  $200000 


332 


200000 


February  15,  1867. 


Cash,  Dr. 

To  Treasurer,  for  Check 


28. 


Sundries,  Dr.  To  Cash 

Paid  for  Construction  &  Equipment  this  month 
Depots 

Road  Building 
Lands 
Surveying 
G-rading 
Bridging 
Tunneling 
Locomotives 
Cars 
Fencing 
Construction  Incidentals 


March  1. 


Sundries,  Dr.  To  Bills  Payable 

Road  Building,  for  notes  to  E.  Dudley  &  Co.,  at  6,  8,  9, 

12,  and  18  months,  for  R.  R.  Iron 
Interest,  for  amount  added  in  notes 

=^  31.  = 


Sundries,  Dr.  to  Cash 

Paid  Operating  Expenses  this  month 
Station 

Shop  •    ' 

Train 
Engines 
Cars 
Track 
Buildings 
Oil  &  Waste 
Fuel 
Operating  Incidentals 


Cash,  Dr. 

To  Treasurer,  for  Check 


To  Cash,  Pd.  Int.  for  6  mths.  on  $600,000  Bonds,  $18,000 
l^n  Exchange  180 


Treasurer,  Dr.  to  Sundries 

To  Freights,  for  Receipts  for  this  month 
//    Passages  //  t/  n         " 

If   Mails        If  If  If         If 

333 


120000 


31000 

18000 

1100 

900 

7500 

14800 

8200 

22200 

17500 

700 

800 


160000 
9080 


3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 


52400 


18180 


78392 


120000 


122700 


169080 


337,00 


52400 


18180 


40310 

34092  I 

3990 


March  31,  1867. 


Construction  &  Equipment,  Dr.  To  Sundries 

To  Depots  To  close  acc't 

Koad  Building  do 

Lands  do 

Surveying  do 

Grading  do 

Bridging  do 

Tunneling  do 

Locomotives  do 

Cars  do 

Fencing  do 
Construction  &  Equipment  Incidentals        do 

Interest  do 

Discount  do 


Operating,  Dr.  To  Sundries 
To  Stations 

Shop 

Train 

Engines 

Cars 

Track 

Building 

Oil  &  Waste 

Fuel 

Operating  Incidentals 


To  close  acc't 
do 
do 
do 
do 
do 
do 
do 
do 
do 


Sundries,  Dr.  To  Operating 

Freights 

Passages 

Mails 


To  close  acc't 
do 
do 


Operating,  Dr. 

To  Profit  &  Loss,  for  gain 


525030 


337G0 


67070 

198100 

7190 

2000 

15600 

29600 

16400 

49800 

46000 

4010 

2000 

27260 

60000 


3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 


'8392 


40310 

34092 

3990 


44632 


44632 


334 


March  31,  1867. 


Profit  &  Loss,  Dr.  To  Sundries 

To  Dividend  No.  1 

For  5%  on  ^300000,  payable  in  Cash  to 
E.  Fulton  5%  oji  $36000  pai(^in 


T.  Graham 
D.  Martin 
A.  T.  Howden 
J.  Carver 
R.  Banks 
A.  Bowman 
W.  M.  Lyon 
Cr.  R.  Duncan 
W.  H.  Duff 


To  Capital  Stock 


15000 
24000 
30000 
27000 
30000 
30000 
45000 
45000 
18000 


Shareholders 
$1800 

750 
1200 
1500 
1350 
1500 
1500 
2250 
2250 

900 


S300000  Cash  Div'nd,  $15000 


For  $2  pr  Sh'e  on  10000  Sh's  to  credit  of  Sharehold's 


T.  Graham 
D.  Martin 
R.  Fulton 
A.  T.  Howden 
J.  Carver 
R.  Banks 
A.  Bowman 
W.  M.  Lyon 
G.  R.  Duncan 
W.  H.  Duff 


$2  on 


500  Shares 

800 

If 

1200 

II 

1000 

II 

900 

II 

1000 

II 

1000 

II 

1500 

II 

1500 

II 

600 

II 

$1000 
1600 
2400 
2000 
1800 
2000 
2000 
3000 
3000 
1200 


44632 


15000 


2O000 


Shares,  10000  Stock  Div'nd,  20000 
To  Surplus  Capital  . 

For  amount  of  gain  undivided 


9632 


335 


^^0"!^  PETROLEUM  BILL  OF  LADING.  ^k^n 

OWNER'S    RISKOF   FIRE. 


JET.  H.  HOUSTON,  C,  A.  CAMTENTER, 

General  Freight  :>igeni J  l^Jittadetphia »  Freight  oigent^  Pittsburgh . 

%mm% .=mc.t^^, r§6 ,  a/. 

Barrels,  said  to  contain and  marked 

to  be  transported  to Consignee,  at 

at Cents  (freight  for  this  and  connecting  Companies 

or  Agents)  per  one  hundred  pounds,  subject  to  the  following  Conditions  and  Agreement : — 

First. — The  owner  or  consignee  shall  pay  freight  and  charges  thereon  at  specified  rates  at  time  of 
delivery,  as  the  same  from  time  to  time  arrives. 

Second. — This  merchandise  may  be  carried  in  Box-Cars,  Covered  Skeleton-Cars,  or  on  open  Plat- 
form-Cars ;  if  destined  beyond  the  line  of  the  Philadelphia  &  Erie,  Northern  Central,  or  Pennsylvania 
Kail  Koads,  it  may  be  transported  by  water,  in  boats,  barges  or  lighters,  or  it  may  be  entrusted  or 
delivered  in  the  Cars  of  this  Company,  or  otherwise,  to  any  other  Railroad,  or  Transportation  Com- 
pany, or  Agent ;  and  such  Rail  Road,  or  Transportation  Company,  or  Agent  so  selected,  shall  be 
regarded  exclusively  as  the  Agent  of  the  owner  or  consignee,  and  shall  be  entitled  to  the  benefit  of 
the  Conditions  and  Provisions  of  this,  and  of  such  Bill  of  Lading  as  they  may  deliver  therefor ;  and 
Ihe  Pennsylvania  Rail  Road  Company,  Lessee  Philadelphia  and  Erie  Railroad,  shall  not  be,  in  any 
event,  responsible  for  the  negligence  or  non-performance  of  any  such  Company  or  Agent,  nor  shall 
such  Company  or  Agent  be  liable  for  any  loss  or  injury  except  upon  its  or  their  respective  routes,  and 
while  such  merchandise  is  in  their  respective  custody. 

Third. — That  the  owner  or  consignee,  in  consideration  of  the  extremeiy  haznrdouH  luiture  of  such  mer- 
chandise, which  is  not  covered  by  any  extra  charge  for  transportation^  hereby  assumes  all  risk  from  leakage, 
evaporation,  and  loss  by  fire,  while  in  transit,  or  at  Depots  or  in  Stations,  or  on  board  boats,  vessels  or 
lighters,  from  any  cause  whatever,  and  all  dangers  and  delays  of  Rail  Road  and  Water  Transportation 
between  the  place  of  shipment  and  final  delivery ;  and  in  any  claim  or  demand,  suit  at  law  or  equity, 
against  this  Company  or  Transportation  Company  or  Agent,  for  loss  or  damage  thereby,  this  Bill  of 
Lading  shall  be  deemed  and  taken  as  a  release  in  full  therefor. 

Fourth. — Whatever  responsibility  is  assumed  under  this  Bill  of  Lading  shall  begin  when  the  mer- 
chandise is  loaded  into  the  cars  of  the  Company  at  the  above  station,  and  cease  when  unloaded  there- 
from, or  entrusted  or  delivered  as  aforesaid,  and  which,  it  is  agreed,  shall  constitute  a  delivery. 

Fifth. — The  owner  or  consignee  will  have  his  or  their  agent  or  employees  to  receive  and  remove 
the  said  merchandise  as  the  same  from  time  to  time  arrives  and  is  delivered  as  aforesaid ;  but  if  not 
then  removed,  the  same  will  remain  at  place  of  unloading,  or  be  removed,  at  the  option  of  the  Com-' 
pany,  to  such  place  of  deposit  as  it  may  select,  at  the  risk  and  cost  of  the  owner  or  consignee. 

Sixth. — Said  merchandise  may  be  retained  for  all  arrearages  of  freight  and  charges  due  this  Com- 
ixany  on  other  goods  by  the  same  consignee  or  owner. 

Seventh. — Nor  shall  any  agent  hereunder  be  liable,  by  reason  of  any  responsibility  hereby  assumed, 
for  any  loss  or  damage  to  such  merchandise,  unless  the  claim  therefor  be  presented  in  writing  at  the 
Office  of  the  General  Freight  Agent  of  the  Pennsylvania  Rail  Road  Company  in  Philadelphia,  above 
mentioned,  within  ten  days  after  the  time  when  the  same  has  been  or  ought  to  have  been  delivered. 

Eighth. — In  case  of  loss  or  damage  to  any  property  herein  rbentioned,  from  such  cause  as  would 
render  this  Company  liable,  it  is  expressly  agreed  that  they  shall  have  the  benefit  of  any  insurance 
that  may  have  been  or  may  be  effected  upon,  or  on  account  of  said  property,  and  the  owner,  consignee 
and  shipper  severally  agree  that  it  shall  be  so  inserted  in  the  policy,  and  the  measure  of  such  loss  ov 
damage  shall  be  the  market  price  of  such  property  at  the  time  and  place  of  shipment. 


iJ^aent 


336 


RAIL  ROAD  ACCOUNTS. 

STOCK  LEDGER, 
PENNSYLVANIA    EAIL   ROAD    COMPANY, 

JANUARY,  1867. 

1.  This  Ledger  has  an  account  opened  in  it  for  every  shareholder.  The  rulings  and  head- 
ings explain  themselves.  No  accounts  are  kept  in  this  Ledger  but  those  of  the  shareholders, 
and  in  business  it  must  have  an  index  in  the  usual  form.  When  a  shareholder  transfers  the 
whole  or  only  part  of  his  stock  (a  thing  that  occurs  daily),  the  Secretary  makes  an  original 
entry  on  the  Transfer  book,  from  whence  it  is  posted  to  this.  See  Transfer  Ledger  from  J. 
Carter  to  T.  Graham  $27520,  and  to  R.  Manly,  $1280.  While  the  Directors  are  preparing 
the  dividend,  they  generally  give  notice,  ten  days  before  declaring  it,  that  no  stock  will  be 
transferred  until  after  it  is  declared.  The  holders  of  the  stock  up  to  that  day  are  entitled 
to  the  dividend  unless  otherwise  agreed  upon  by  the  purchaser;  but  the  purchaser  buys  the 
interest  in  the  surplus  capital  with  the  stock. 

2.  When  you  take  a  trial  balance  off  your  General  Ledger  before  closing,  and  when 
making  the  dividend,  you  piust  also  take  off  from  the  Stock  Ledger  a  list  of  the  Shareholders, 
with  the  amount  paid  by  each.  The  aggregate  amount  must  agree  with  the  credit  of  the 
Capital  Stock  in  the  General  Ledger.     In  this  instance  it  is  $300000. 

3.  This  Ledger  is  never  closed ;  but  the  individual  accounts  in  it  are  closed  when  they 
transfer  all  the  stock  in  J.  Carver's  account. 


W  337 


1    Dr. 


THOMAS 


GRAHAM. 


p. 

Shares. 

1867. 
Jan. 
Feb. 
Mar. 
Apl. 

2 
1 

31 
6 

Treasurer 

// 
Profit  and  Loss 
J.  Carver  f. 


Cr. 


p.  ISharea. 

500 
II 
II 

860 


5000 
10000 

1000 
27520 


R. 


PULTON 


1867. 

Jan. 
Feb. 
Mar. 


Treasurer 
Profit  and  Loss 


1 

4 

1200 
II 
II 

10 
20 

2 

r-((M 

DAVID 


MARTIN. 


Jan. 
Feb. 
Mar. 


Treasurer 
Profit  and  Loss 


800 
II 
It 


8000 

16000 

1600 


A.  T. 


HOWDEN. 


1867. 
Jan. 
Feb. 
Mar. 


Treasurer 

// 
Profit  and 


1000 


10000 

20000 

2000 


JAMES 


CARVER. 


Apr. 


[R.  Manly 
6  I  T.Graham 


40 
860 


1280 
27520 


28800 


1867. 

Jan. 
Feb. 
Mar. 


338 


Treasurer 
Profit  and  Loss 


1 

4 

900 
II 

II 

10 

20 

2 

9000 

18000 

1800 

28800 

Pr. 


R. 


BANKS. 


Cr.     2 


p. 

Shares. 

18«7. 

P. 

Shares. 

% 

1 

Jan. 

2 

Treasurer 

1 

1000 

10 

10000 

Feb. 

1 

// 

//  !20| 

20000 

Mar. 

31 

Profit  &  Loss 

4 

n 

2 

2000 

A-                                 •        BOWMAN. 

1867. 

Jan. 

2 

Treasurer 

1 

1000 

10 

10000 

Feb. 

1 

H 

// 

20 

20000 

Mar. 

31 

Profit  &  Loss 

4 

If 

2 

2000 

WM.  M.                                        LYON. 

1867. 

Jan. 

2 

Treasurer 

1 

1500 

10 

15000 

Feb. 

1 

// 

// 

20 

30000 

Mar. 

31 

Profit  &  Loss 

4 

it 

2 

3000 

GEO.  K                                    DUNCAN. 

1 

i 

1 
1 

ISffT. 

i 

Jan. 

2 

Treasurer 

1 

1500 

10 

15000 

1 

Feb. 

1 

'f 

// 

20 

30000 

* 

i 
1 

! 

Mar, 

31 

Profit  &  Loss 

4 

// 

2 

i    3000 

i 

WM.  H.                                       DUEP. 

1867. 

Jan. 

2 

Treasurer 

1 

600 

10 

6000 

Feb. 

1 

// 

// 

20 

12000 

Mar. 

31 

Profit  4e  Loss 

4 

tt 

2 

1200 

EGBERT                                    MANLY. 

1867. 

1 

Apr. 

2 

J.  Carver             f 

1 

40 

32 

1280  1 

i 

! 

339 


M 

0 
0 

p 

H 
H 


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i 

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s 

s 

u 

P 

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(S 

s. 

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p. 

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s 

s 

a 

to 

0) 

^1 

■ol 

'9 

<o 

> 

'S 

SJ 

Pi 

i 

(O 

— 



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ft 

f 

( 

c 

o 

o 

o 

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o 

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o 

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o 

g 

o 

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lO 

lO 

o 

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o 

lO 

o 

o 

g 

o 

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CO 

fM 

o 

s 

t- 

lO 

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(M 

o 

<! 

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<M 

rH 

(M 

rH 

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's'2 

II 

^ 

^ 

^ 

^ 

^ 

^ 

^ 

^ 

^ 

'P^ 

l| 

lO 

»o 

o 

iO 

o 

o 

o 

lO 

lO 

JO 

i 

1 

I& 

o 

o 

o 

o 

o 

o 

o 

o 

o 

o 

.    1 

1 
o     1 

o-o 

o 

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o 

o 

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o 

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o 

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o     1 

^I 

o 

o 

o 

o 

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o 

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o 

o 

o 

o 

o 

o 

J:- 

o 

CO 

CO 

to 

o 

o 

'^ 

o 

CO 

CO 

G^l 

tH 

tH 

CO 

1-H 

CO 

^ 

CI 

o 

CO 

. 

o 

A 

A 

CQ 

«^ 

o 
o 

g 

•*a 

P^' 

w 

H 

1^ 

1 

1 

xn 

< 

i 

a 

1-5 

6 

a 

1 

a^ 

< 

a 

1 

o 

ft 

rt 

o 

c3 

f3 

3 

"9 

^ 

o 

>^ 

■_5 

■ 

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ft 

ft 

f=H 

o_ 

w 

_^ 

_s__ 

M 

1 

3«s 

to 

s 

*>% 

C3  ■ 


340 


RAIL  ROAD  ACCOUNTS. 

GENERAL    LEDGER, 

PENNSYLVANIA  RAIL  ROAD. 


1.  This  book  and  the  Stock  Ledger  are  generally  opened  at  once,  as  all  entries  relating 
to  the  shareholders  have  to  be  posted  into  that  Ledger,  and  this  one  also.  See  the  posting 
to  both,  January  2 

2.  This  Ledger,  in  business,  must  have  an  Index,  but  it  need  not  be  written  here.  The 
Bonds  Payable  account  is  the  same  as  the  Bills  Payable  account,  and  may  be  posted  to  that 
account,  but  it  is  better  to  follow  the  established  custom. 

3.  All  the  accounts  which  you  closed  into  Construction  &  Equipment  account  represent 
property,  and  the  debit  side  of  that  account  stands  in  the  debit  side  of  the  Balance  account 
as  assets  of  the  compan3^ 

4.  Operating  accounts  are  of  the  same  nature  as  Profit  &  Loss,  into  which  they  finally 
close.  Dividend  and  Surplus  Capital  are  both  accounts  representing  liabilities,  and  avQ 
entered  in  the  credit  of  the  Balance  account. 

5.  All  the  accounts  that  close  into  Construction  &  Equipment  and  Operating  account 
remain  closed,  and  the  unoccupied  space  below  them  may  be  used  for  a  new  account  without 
a  new  heading. 

6.  By  comparing  these  Books  before  writing,  the  student  who  is  well  versed  in  Double 
Entry  Book-keeping  will  have  no  trouble  in  understanding  them. 

7.  Surplus  Capital  is  a  reserve  fund  to  enable  the  directors  to  make  uniform  dividends 
when  business  is  unfavorable. 


341 


Dr. 


CAPITAL 


STOCK. 


Cr. 


1867. 

Jan. 

2 

Feb 

1 

Mar. 

31 

Treasurer 

// 
Profit  &  Loss 


1 

100000 i 

200000  S 

4 

20000 

TREASURER'S 


ACCOUNT. 


1867. 

Jan. 

Feb. 
Mar. 


Capital  Stock 
Bonds  Payable 
Capital  Stock 
Sundries 


Balance 


1 

2 

100000 

540000 

200000 

78392 

1867. 

Jan. 
Feb. 
Mar. 

15 
15 
31 

918392 

575992 

Cash 


Balance 


170000 1 

120000  i 

52400! 

5759921 


918392 


CASH 


ACCOUNT. 


1867.  ! 

Jan.  15  Treasurer 

Feb.  151 

Mar.  81 


Balance 


1 

2 

■ 

170000 

120000 

52400 

1867. 

Jan. 
Feb. 
Mar. 

31 
28 
31 

342400 

12690 

Sundries 

// 

II 
Interest 
Balance 


1 

2 

6 

155070 

122700; 

33760 

18180 1 

12690; 

342400 

BONDS 


PAYABLE. 


1867. 

Jan. 


31 


Sundries 


600000 


DISCOUNT 

ACCOUNT. 

1867. 

Jan. 

31 

Bonds  Payable       1 

4 

60000 

1867. 

Mar. 

31 

Constr.  &  Equip. 

3 

60000 

342 


Dr. 

DEPOTS. 

Cr. 

2 

1867. 

Jan. 
Feb. 

31 

28 

Cash 

1 

2 

36070 
31000 

1867. 

Mar. 

31 

Constr.  &  Equip. 

3 
i 

67070 

67070 

67070 

\\t 

ROAD 


BUILDING. 


1887.    I       ' 

Jan.    31  Cash 
Feb.   28     // 
Mar. 


Bills  Payable 


1 

2 

1 

20100 

18000 

160000 

1 

1  im. 
Mar. 

j 

31 

198100 

f 

Constr.  &  Equip. 


198100 


198100 


LANDS 


ACCOUNT. 


1887. 

1 

Jan. 

31 

Feb. 

28 

Cash 
It 


6090 
1100 


7190 


1867. 

Mar. 


31 1  Constr.  &  Equip. 


7190 


71901 


SURVEYING 


ACCOUNT. 


Jan.    31  Cash 
Feb.   28     If 


1 

2 

1 

1100 
900 

1807. 

Mar. 

31 

2000 

1 

Constr.  &  Equip. 


2000 


2000  i 


GRADING 


ACCOUNT. 


I 

1867.    I       i 

Jan.   31  Cash 
Feb.    28 


1  1 

1 

i2 

!           t    1 

8100 
7500       , 

1    1867. 

Mar. 

31 

15600 [ 

Constr.  &  Equip. 


343 


15600 


15600 


3     Dr. 


BRIDGING. 


Cr. 


1867. 

Jan. 

31 

Feb. 

28 

Cash 


14800 
14800 


29600 


1867. 

Mar. 


31 


Constr.  &  Equip. 


3 

29600 

29600 

TUNNELING 


ACCOUNT. 


1867. 

Jan. 

31 

Feb. 

28 

Cash 


1 

2 

8200 
8200 

1867. 

Mar. 

31 

16400 

Constr.  &  Equip. 


16400 


16400 


LOCOMOTIVE 


ACCOUNT. 


1867. 

Jan. 

31 

Feb. 

28 

Cash 


27600 
22200 


49800 


1867. 

Mar. 


31 


Constr.  &  Equip. 


49800 


49800 


CARS 


ACCOUNT. 


1867. 

Jan. 
Feb. 

31 

28 

Cash 

1 
2 

28500 
17600 

1867. 

Mar. 

31 

Constr.  &  Equip. 

3 

46000 

46000 

46000 

FENCING 


ACCOUNT. 


1867. 

Jan. 

Feb. 


Cash 
n 


1 

2 

3310 
700 

1867. 

Mar. 

31 

4010 

Constr.  &  Equip. 


4010 


4010 


CONSTRUCTION 


INCIDENTALS. 


Jan. 
Feb. 


Cash 
II 


1200 
800 


2000 


1867. 

Mar. 


31 


Constr.  &  Equip. 


3 

2000 

2000 

' 

BILLS 


PAYABLE. 


1867. 

Mar. 


Sundries 


2 

169080 

344 


Dr. 


INTEREST, 


Cr.     4 


1867. 

Mar. 


ll  Bills  Payable 
31 1  Cash 


2 

9080 
18180 

i    1867. 

Mar. 

j 
31 

27260 

'— 

Constr.  &  Equip. 


3  I      27260 


27260 


FREIGHT 


ACCOUNT. 


1867. 

Mar. 


31  Operating 


3 

40310 

1867. 

Mar. 

■ 

31 

Treasurer 


40310 


PASSAGE 


ACCOUNT. 


1867. 

Mar. 


31 


Operatii 


3 

34092 

1867. 

Mar. 

31 

Treasurer 


34092 


U.  S.  MAIL 


SERVICE. 


1867. 

Mar 


31 


Operating 


3 

3990 

1867. 

Mar. 

31 

Treasr.i'Sf 


3990 


STATION 


SERVICE, 


1867. 

Mar. 


31 


Cash 


2 

3100 

i 

1867. 

Mar. 

1 

1 

31 

Operating 


3100 


SHOP 


SERVICE. 


1867. 

Mar. 


31 


Cash 


2 

4305 

1867. 

Mar. 

31 

Operating 


4305 


TRAIN 


SERVICE. 


1867. 

Mar. 


31 


Cash 


5280 


1867. 

Mar. 


31 


Operating 


5280 


.^5 


5 

Dr 

ENGINE 

SERVICE. 

Ce. 

1867. 

Mar. 

31 

Cash 

2 

4200 

1 

1867. 

Mar. 

31 

Operating 



3 

4200 

. 

CAR 

REPAIRS. 

1867.  j 

Mar.   31 

Cash 

2 

5100 

— 

1867. 

Mar. 

31 

Operating 

3 

5100 

1 

TRACK  » 


REPAIRS. 


1867. 

Mar. 


31   Cash 


4400 


1867. 

Mar.   31]  Operating 


4400 


BUILDING 


REPAIRS. 


1867. 

Mar. 


31   Cash 


2 

2160 

1867. 

Mar. 

31 

Operating 


2160 


OIL 


& 


WASTE, 


1867.  ! 

Mar.  311  Cash 


1105 


Mar. 


31  Operating 


3J 


1105 


FUEL 


ACCOUNT. 


1867.  I 

Mar.  31  Cash 


2 

2880 

1867. 

Mar. 

31 

Operating 


2880 


OPERATING                                 INCIDENTALS. 

1867. 

Mar. 

31 

Cash 

2 

1230 

= 

1867. 

Mar. 

31 

Operating 

8 

1230 

• 

346 


Dr. 

PROFIT 

& 

LOSS. 

Cr. 

O 

1867. 

Mar. 

31 

Sundries 

4 

44632 

1867. 

Mar. 

31 

Operating 

3 

44632 

» 

CONSTRUCTION            &                 EQUIPMENT. 

1867. 

Mar. 

■ 
31 

Sundries 

3 

525030 

BALANCE                                        ACCOUNT. 

1867.- 1 

Mar.  131 


Treasurer  f 

Cash 

Constr.  &  Equi£^ 


1 

6 

575992 

12690 

525030 

1867. 

Mar. 

31 

1113712 

Capital  f 

Bonds  Payable 
Bills  Payable 
Dividend  No.  1 
Surplus  Capital 


1 

320000 

600000 

3 

169080 

6 

15000 

1 

9632 

1113712 

OPERATING 


ACCOUNT. 


1867.    1 

Mar.  131 


Sundries 
Profit  &  Loss 


33760 1 
44632| 

78392 


1867. 

Mar 


31 


Sundries 


78392 


78392 


DIVIDEND 


No.  1. 


1867.    I        I 

Mar.  31  Profit  &  Loss 


15000 


SURPLUS 


CAPITAL. 


1867. 

Mar. 


31  Profit  iSc  Loss 


9632 


347 


QUESTIONS  FOR  EXAMINATION  ON  RAIL  ROAD  ACCOUNTS. 

1.  Where  are  the  totals  of  the  Construction  &  Equipment  Day  Book  carried  to?     (N. 

3,  p.  315.) 

2.  What  are  the  entries  of  this  book  made  from?     (N.  5,  p.  315.) 

3.  Where  are  the  total  amounts  of  the  money  columns  of  the  Operating  Expenditures  re- 

presented ?     (N.  2,  p.  323.) 

4.  Where  are  the  aggregates  of  the  Operating  Receipts  carried  to  ?      (N.  2,  p.  329.) 

5.  What  entries  originate  upon  the  Journal  ?     (N.  1,  p.  331.) 

6.  Who  is  supposed  to  keep  the  books  of  the  company?     (N.  2,  p.  331.) 

7.  How  does  the  Secretary  keep  his  account  with  the  Treasurer?     (N.  2,  p.  331.) 

8.  What  is  done  after  the  contents  of  the  Journal  are  posted  into  the  General  Ledger? 

(N.  4,  p.  331.) 

9.  What  accounts  are  to  be  opened  preparatory  to  closing  the  Ledger?     (N.  4,  p.  331.) 

10.  Where  are  the  closing  entries  of  the  Ledger  made?     (N.  5,  p.  331.) 

11.  How  is  the  total  gain  divided?     (N.  6,  p.  331.) 

12.  What  accounts  are  kept  in  the  Stock  Ledger?     (N.  1,  p.  337.) 
13  How  are  transfers  of  stock  made?     (N.  1,  p.  337.) 

14.  When  is  the  transfer  of  stock  prohibited?     (N.  1,  p.  337.) 

15.  If  a  sale  of  stock  is  made  while  the  transfer  book  is  closed,  who  is  entitled  to  the 

Dividend?     (N.  1,  p.  337.) 

16.  What  must  be  done  when  you  take  a  Trial  Balance  off  the  Greneral  Ledger?     (N.  2, 

p.  337.) 

17.  What  must  the  aggregate  amount  of  the  credits  of  the  Stock  Ledger  agree  with  ? 

(N.  2,  p.  337.) 

18.  When  are  the  accounts  in  this  Ledger  closed?     (N.  3,  p.  337.) 

19.  When  is  the  General  Ledger  opened?     (N.  1,  p.  341.) 

20.  Is  there  any  difference  between  "Bonds  Payable"  and  "Bills  Payable"?    (N.  2,  p.  341.) 

21.  What  do  the  accounts  closing  into  "Construction  &  Equipment"  represent?     (N.  3, 

p.  341.) 

22.  What  is  the  nature  of  Operating  Accounts?     (N.  4,  p.  341.) 

23.  Into  what  account  do  they  close?     (N.  4,  p.  341.) 

24.  Are  "Dividend"  and  "Surplus  Capital"  effects,  or  liabilities?     (N.  4,  p.  341.) 

25.  AVhat  is  done  with  the  accounts  closed  into  Construction  &  Equipment  after  the  books 

are  closed?     (N.  5,  p.  341.) 

26.  What  is  "Surplus  Camtal"?     (N.  7,  p.  341.) 


348 


DUFF'S  BOOK-KEEPING. 

PRIVATE  BANKER'S   ACCOUNTS. 

1867. 


349 


PRELIMINARY  REMARKS. 

Although  the  principles  of  Bank  Accounts  have  been  fully  illustrated  in  our  set  of 
National  Bank  Accounts,  the  business  of  the  Private  Banker  diflfers  in  so  many  particulars 
from  that  of  the  Joint  Stock  Company  that  we  think  the  following  set  of  books,  expressl}^ 
adapted  to  this  particular  business,  will  prove  useful  in  perfecting  the  business  man's  edu- 
cation 


350 


CASH  BOOK, 

PRIVATE  BANKER'S  ACCOUNTS. 

NOVEMBER,  1867. 


1.  Bankers  generally  make  tliis  book  perform  the  office  of  Cash  Book  and  Journal.    The 
arginal  pages  indicate  the  direct  posts  to  the  General  Ledger,  which  is  made  up  from  this 

book. 

2.  The  aggregate  monthly  receipts  and  payments  are  posted  from  the  right-hand  money 
columns. 


361 


]      Dr. 

O^SH 

1S67. 

i 

Nov. 

2I  To  P.  Duff" 
!    //    Wm.  Hay 

Eec'd  in  full  for  his  capital 
//      //      II      ir    II        II 

1 
1 

20000 
10000 

//    W.Wood 

II      II      II      II    II        II 

1 

10000 

//    Depositors 

II     per  Deposit  Eegister 

P.  1 

2 

2200 

■ 

//    Discount 

'/            Discount  Book 

3| 

I      158 

92 

7 

//    Depositors 

//            Deposit  Eegister 

21 

:     1900 

//    Discount 

//            Discount  Book 

1 

3! 

69 

8 

//    Depositors 

II            Deposit  Eegister 

2 

i     2200 

//    Discount 

//            Discount  Book 

2 

3 

i        25 

9 

//    Depositors 

//            Deposit  Eegister 

2 

1    3260 

II    Discount 

II            Discount  Book 

3 

39 

70 

10 

II    Depositors 

'/            Deposit  Eegister 
//               do.          do. 

2 

3049 

16 

//        do. 

2 

5985 

//    Discount 

//            Discount  Book 

3 

62 

47 

23; 

//    Depositors 

'/            Deposit  Register 

2 

2900 

j 

//    Discount 

//            Discount  Book 

3 

154 

57 

1 

'/    Bills  Keceivable 

//      for  Discount  No.  3 

2 

;    5600 

1 

30 

//    Depositors 

//    Bills  Eeceivable 

//      per  Deposit  Eegister 
II     for  Discount  No.  2 

2 

2 
2 

6630 
4000 

1 

'/    Discount 

'/      per  Discount  Book 

1 

3 

110 

06 

78343 

1 

66 

78343 

Balance 

26533 

66 

Dec. 

4 

To  Discount 

Rec'd  per  Discount  Book 

2 

3 

1    1260 

7 

//    Depositors 

'/            Deposit  Eegister 

2 

2 

!    8815 

//    Discount 

II            Discount  Book 

2 

3 

75 

50 

14 

//    Depositors 

f/    Bills  Eeceivable 

//    do.            do. 

II            Deposit  Eegister 
//      for  Discount  No.  4 
II                  II        No.  5 

2 

2 
2 
2 

9960 
2800 
4200 

II    Discount 

II     per  Discount  Book 

9 

3 

1    2618 

60 

21 

II    Depositors 

II            Deposit  Eegister 

2 

2 

2700 

»/    Discount 

//            Discount  Book 

2 

3 

80 

80 

28 

II    Depositors 

//            Deposit  Eegister 

2 

2 

1410 

II    Discount 

II            Discount  Book 

2 

3 

143 

84 

//    Bills  Eeceivable 

II     for  Discounts  No.  8,  9,  and  10 

2 

3600 

29 

//    Discount 

//     per  Discount  Book 

9 

3 

306 

30 

//    Depositors 

II            Deposit  Eegister 

2 

2' 

890 

II    Discount 

//            Discount  Book 

2 

3 

200 

31 

II    Depositors 

//            Deposit  Eegister 

2 

2 

13910 

'/    Discount 

//            Discount  Book 

2 

3 

113 

34 

II    Duff"  Brothers  &  Co. 

//      for  draft  on  them 

3 

1000 

II    Thomas  Thompson  &  Co 

.     //                //      H     do. 

3 

6000 

//    Bills  Eeceivable 

'/            Discount  No.  7 

2 

3800 

II      do.        do. 

II                 II            II    1 

2 

6000 

74 

68883 

08 

95416 

1 
1 
i 

Balance 

6737 

74 

352 


A.ccouisrT. 


Cr. 


1867. 

Nov. 


7 
8 
9 

10 

11 

16 
23 

30 


By  Depositors 

//  Bills  Receivable 

//  Discount 

//  Depositors 

'/  Discount 

//  Depositors 

//  Discount 

//  Depositors 

//  Bills  Receivable 

//  Discount 

//  Depositors 

//  Bills  Receivable 

//  Depositors 

//  Discount 

//  Depositors 

//  Bills  Receivable 

//  Discount 

//  Depositors 

tf  Discount 


Dec. 


28 


29 
30 

31 


By  Depositors 
//    Discount 
//    Depositors 

Discount 

Bills  Receivable 

Depositors 

Bills  Receivable 

Depositors 

Discount 

Bills  Receivable 

Depositors 

Discount 

Bills  Receivable 

Duff  Brothers  &  Co. 

Bills  Receivable 
do.        do. 

R.  P.  Duff 

Depositors 

Discount 

Bills  Receivable 

T.  F.  Shephard 

T.  Thompson  &  Lo. 


Pd.  per  Check  Register 

//  for  Notes  1,2,  3,  and  4 

//  per  Discount  Book 
//  Check  Register 

//  Discount  Book 

'/  Check  Register 

"  Discount  Book 

'/  Check  Register 

'/  for  Note  5 

//  per  Discount  Book 
//  Check  Register 

//  for  Note  6 

//  per  Check  Register 
'/  Discount  Book 

//  Check  Register 

//  for  Notes  7,  8,  9,  and  10 

//  per  Discount  Book 
//  Check  Register 

'/  Discount  Book 

Balance  carried  down 


Pd.  per  Check  Register 

//  Discount  Book 

//  Check  Register 

'/  Discount  Book 

'/  for  Note  11 

'/  per  Check  Register 

//  for  Notes  12,  13,  and  14 

//  per  Check  Register 

'/  Discount  Book 

II  for  Notes  15  and  16 

'/  per  Check  Register 

w  Discount  Book 

//  for  Notes  17,  18,  19,  and  20 

'/  Retaining  n/p  of  Note  No.  10 

//  for  Notes  21  and  22 

'/  //       //     23,  24,  and  25 

'/  Retaining  n/p  of  Note  No.  19 

'/  per  Check  Register 

//  Discount  Book 

//  for  Notes  No.  26,27,28,29,30,&31 

'/  Retaining  n/p  of  Note  No.  10 

1/  do.             '/        '/       '/      1 


Balance  carried  do^v 


353      # 


1 

2 

1000 

2 

17400 

-L 

3 

20 

2 

675 

3 

37 

2 

1600 

3 

12 

2 

2400 

2 

4200 

3 

15 

2 

1100 

2 

1600 

2 

1300 

3 

75 

2 

7920 

2 

7400 

3 

105 

2 

4920 

3 

31 

2 

26533 

66 

78343 

36 

2 

560 

1 

3 

15 

2 

2 

360 

2 

3 

24 

2 

3800 

2 

2 

430 

2 

4500 

2 

2 

2850 

2 

3 

56 

2 

5600 

2 

2 

3640 

2 

3 

12 

2 

12600 

3 

1188 

2 

24000 

2 

15000 

4 

130 

2 

2 

6700 

2 

3 

50 

L 

2 

1254 

4 

960 

3 

4950 

6737 

'"i 

95416 

n 

, 

i 

!l 
!! 

1 

51810 


r»IlIVA.TE    BA.lSrKER'S 
PITTSBURGH,  Nov.  2, 1867. 


1867. 

Nov. 

2 

7 
8 

9 
10 

16 
23 

Wilson,  Childs  &  Co. 
R.  S.  Carson 
W.  J.  Murphy 
Wm.  Payne 

Wm.  Payne 
J.  R.  Weldin 
R.  Banks 
Jas.  Wood 

C.  B.  1 
C.  B.  1 

C.  B.  1 

Note  2 
3 
6 

C.B.I 

Notes 
4 

C.B.I 

Note  7 

C.  B.  1 

No.  1 

C.B.I 

1 
1 

1 
1 

1 
2 

2 
2 

2 

2 
1 
2 

1 
1 

2 
3 

2 

,1 
3 
3 
3 

2 
3 
4 

4 

2 
4 
4 
5 
1 
5 

400 
600 
500 
700 

2200 

Nov. 

300 
600 
400 
600 

1900 

Nov. 

Chas.  Page 
W.  Stoner 
R.  S.  Carson 
R.  Banks 

700 

240 

260 

1000 

2200 

Nov. 

Wm.  Payne 
R.  S.  Carson 
R.  Banks 
J.  Pillow 

300 

260 

1000 

1700 

3260 

Nov. 

J.  R.  Weldin 
W.  J.  Murphy 
Roht.  Knox 
Jas.  Watt 
Geo.  Draper 

• 

Jas.  Wood 
W.  Hay 
John  Hatch 
White  &  Edwards 

Chas.  Page 
Jones  &  Hatch 
Rich  &  Gray 
Hay  &  Wood 
Wm.  Payne 
Certificate  of  Deposit 

600 
500 
749 
450 
750 

3049 

Nov. 

2000 

1475 

760 

1750 

5985 

Nov. 

450 
750 
460 
500 
40  1 
700' 

2900  1 

— 

.^54 


DEPOSIT    REaiSTER. 
PITTSBURGH,  Nov.  30,  1867. 


S 


1867. 

Nov. 


Dec. 


Dec. 


Dec. 


Dec. 


Dec. 


Dec. 


30 


14 


21 


28 


31 


Chas.  Page 
AVm.  Hay 
E.  S.  Carson 
Wm.  Stoner 
Hay  &  Wood 
Certificate  of  Deposit 


Note  8 


No.  2 
//  3 
ff    4 


C.  B.  1 


Wilson,  Childs  &  Co. 
James  Pillow 
Hay  &  Wood 


Note    1 
12 


C.  B.  1 


James  Watt 
R.  Knox 
Jones  &  Hatch 
Certificate  of  Deposit 


Note  15 
14 


No.  5 


C.B.I 


Geo.  Draper 
Wm.  Stoner 


Note  11 


C.  B.  1 


Jno.  Hatch 
White  &  Edwards 
Rich  &  Grray 
Hay  &  Wood 


301  Jones  &  Hatch 

W.  Payne 

R.  Martin 


Wm.  Hay 
R.  Banks 
H.  P.  Ford  &  Co. 

Wilson,  Childs  &  Co. 
W.  Stoner 
W.  Payne 


Note  16 
17 
18 
20 

C.  B.  1 

Note  19 

C.B.I 

Note  10 


C.B.I 


1.  In  this  book  enter  all  receipts  of  money  received  on  deposit  acconnt  and  for 
Certificates  of  Deposit.  The  daily  amounts  are  carried  to  the  Cash  Book,  and  tbo 
particulars  are  posted  into  the  Depositors'  Ledger. 


. 

2 

470 

3 

1000 

1 

1400  i 

2 

560 

5 

700  i 

6 

1000  i 

5 

600 

5 
I 

900 

6630 

1 

400  1 

3 

7800  i 

6 

3 

615  1 

8815! 

1 

3000 

3 

3960 

4 

1000 

6 
3 

2000 

9960 

2600 

2 
4 

100 

2700 

200 

4 

150 

4 

500 

5 
4 

560 

1410 

180 

1 

360 

6 
3 

400 

890 

960 

2 

550 

5 

600 

1 

3200 

2 

4800 

1 

3800 

13910 

■ 

355 


PRIVA-TE    B^ISIKEII'S 


PITTSBURGH,  Nov.  2, 1867. 


1 
1867. 

Nov. 

2 

7 
8 
9 

10 
16 

23 

30 

W.  Payne 

Wilson,  Childs  &  Co. 

W.  J.  Murphy 

C.  B.  1 
C.  B.  1 

C.  B.  1 

Note  6,  Collection  Register 

C.  B.  1 
C.  B.  1 

C.  B.  1 

Certificate  of  Deposit  No.  1 

Note  3  Discounted 
C.B.I 

Certificate  of  Deposit  No.  2 

V                               //              II       3 

C.  B.  1 

payment  of  all  Checks  and  Certificates  of  Deposit, 
to  the  Cash  Book,  and  post  the  particulars  to  the  De- 

1 

1 
1 

1 

2 
2 

2 
2 

1 

1 

2 
2 
3 

1 
1 
3 

3 
3 
2 
3 

4 
4 
4 
4 
5 
2 

4 
4 
1 
1 
1 

400 
400 
200 

1000 

R.  S.  CarsoD 
Robt.  Banks 
Jas.  Wood 

375 
200 
100 

675 

J.  R.  Weldin 
C.  Page 
W.  Payne 

700 
600 
300 

•• 

1600 

R.  S.  Carson 
R.  Banks 
W.  Stoner 
James  Pillow 

Wm.  Payne 
W.  J.  Murphy 
Robt.  Knox 

1000 
600 
200 
600 

2400 

200 
700 
200 

1100 

Jas.  Watt 
Geo.  Draper 
1  Jas.  Wood 
Wm.  Hay 

400 
200 
500 
200 

1300 

Jones  &  Hatch 
White  &  Edwards 
John  Hatch 
Rich  &  Gray 
Hay  &  Wood 
C.  Page 

400 
800 
700 
20 
400 
5600 

7920 

• 

John  Hatch 
!  White  &  Edwards 

Wm.  Payne 
1  Wilson,  Childs  &  Co. 

R  S.  Carson 

840 
1000 

600 
1000 
1480 

4920 

1.  This  book  records  the 
Transfer  the  amounts  duily 
posit  Ledger. 

356 


CHECK    REaiSTER 
PITTSBURGH,  Dec.  4,  1867. 


3 


1887.  ! 

Dec.  I    4 


14 


21 


28 


31 


Hay  &  Wood 
R.  S.  Carson 


Jones  &  Hatch 
Wm.  Payne 


R.  Martin 
Rich  &  Gray 


C.  B.  1 


C.  B.  1 


C.  B.  1 


Wm.  Hay 

Wilson,  Childs  &  Co. 

R.  Knox 

Certificate  of  Deposit  No.  5 


C.  B.  1 


R.  Knox 

Jones  &  Hatch 
White  &  Edwards 
Certificate  of  Deposit  No.  3 


C.  B.  1 


Wm.  Stoner 
Wilson,  Childs  &  Co. 

do.         do. 
Certificate  of  Deposit  No.  1 


C.  B.  1 


400  j 
160 


560 


200 
160 


360 


300 
^30 

430 


500 

200 

150 

2000 

— 

2850 

400 

240 

2400 

600 

3640 

5000 
700 
300 
700 

~  ' 

6700 

~ 

357 


NOTES  &  BILLS 


When  Rec'd. 

Discounted  tor. 

Drawee. 

On  Whom  Drawn. 

In  whose  Favor. 

1867. 

Nov. 

2 

Jno.  Scott 

Simon  Payne 

Wm.  Young 

Jno.  Jones 

R.  Banks 

Thos.  Gains 

S.  Myers 

S.  White 

Chas.  Page 

S.  White 

S.  Smith 

W.  Hay 

J.  S.  Ward 

Good  &  Bacon 

9 

T.  Rhodes 

S.  Barrett 

T.  Rhodes 

11 

Good  &  Little 

S.  Wise 

J.  S.  Duncan 

23 

Moss  &  Howard 

R.  Goodwill 

Moss  &  Howard 

Rhodes  &  Verncr 

M.  Thompson 

Rhodes  &  Veruer 

a.  R.  White 

A.  Mason 

G.  R.  White 

W.  Payne 

C.  Ralston 

T.  C.  Duff 

S.  Stevens 

Dec. 

7 

J.  Taylor 

Jno.  Eastman 

E.  D.  Jones 

14 

S.  Barrett 

W.  Hare 

S.  Barrett 

D.  A.  Carston 

Simon  Payne 

D.  A.  Carston 

•V 

Jno.  Hawkins 

Hay  &  Wood 

Jno.  Hawkins 

21 

Hay  &  Wood 

Jas.  May 

Hay  &  Wood 

J.  Watt 

Rogers  &  Co. 

E.  Lynch 

J.  Dally 

28 

J.  Pillow 

Ragan  &  Morse 

J.  Pillow 

R.  Banks 

T.  A.  Craig 

R.  Banks 

S.  Simpson 

M.  Love 

S.  Simpson 

W.  Wells 

C.  Page 

W.  Wells 

29 

R.  Smith 

J.  Brown 

Henry  Rigg 

E.  Waltby 

Adrian  &  Co. 

Jno.  Kerr 

E.  Waltby 

30 

Thos.  Anderson 

C.  Rhea 

C.  Gipner 

D.  Fox 

W.  F.  Smith 

Wm.  Cook 

J.  C.  Young 

W.  Langdon 

W.  Langdon 

Ourselves 

31 

B.  F.  Swan 

L.  C.  Donnell 

G.  L.  Ryder 

S.  J.  Grant 

J.  M.  Smith 

G.  W.  Holmes 

R.  B.  Wilson 

R.  Root 

J.  Hoag 

M.  Die 

Jno.  Black 

S.  Green 

D.  Hall 

D.  AVhite 

R.  P.  Murry 

L.  Bradley 

V.  B.  Smith 

. 

J.  Higgins 

J.  A^insonhaler 

A.  D.  Walker 

H.  S.  Kerr 

1.  Enter  all  discounted  paper  as  above;  the  Discounts  in  the  Discount  Book,  the  payments  in  the  Cash  Book,  and  (he  day 
of  maturity  in  the  Tickler. 

358 


BILL    BOOK. 
DISCOUNTED. 


Where  Payable. 

No. 

Date. 

Time. 

When  Due. 

Amoukt. 

Memoeanda. 

1867. 

1867. 

(Jnicago 

1 

Sept. 

25 

3  months 

Dec. 

28 

5000 

Paid  Dec.  31 

City 

2 

28 

60  days 

Nov. 

30 

4000 

//     Nov.  30 

// 

3 

Oct. 

21 

|30     // 

23 

5600 

//        II     23 

t^hiladelpliia 

4 

|Nov. 

7 

jl  month 

Dec. 

10 

2800 

//     Dec.  14 

City 

5 

Sept. 

7 

1 3  months 

1 

4200 

Protested  Dec.  10,  pd 

Dec.l4 

// 

6 

July 

11 

5       . 

14 

1600 

//        Dec.  14 

// 

,  7 

18 

|5      // 

1 

21 

3800 

//        Dec.21,pd. 

Dec  31 

II 

8 

June 

25 

6       // 

28 

600 

Paid  Dec.  28 

II 

9 

Sept. 

26 

90  days 

j 

28 

1800 

//     Dec.  28 

New  York 

10 

Nov. 

18 

30     // 

1868 

21 

1200 

II     Dec.  28 

City 

11 

Aug. 

1 

6  months 

Feb. 

4 

3800 

// 

12 

July 

10 

6       // 

Jan. 

13 

800 

II 

13 

Sept. 

1 

5       // 

|Feb. 

4 

3000 

II 

14 

28 

4       // 

1  Jan. 

31 

700 

II 

15 

Dec. 

1 

3       // 

Mar. 

4 

1600 

St.  Louis 

16 

20 

I3       . 

23 

4000 

City 

17 

15 

90  days 

18 

2000 

// 

18 

5 

60     // 

Feb. 

6 

4000 

// 

19 

20 

3  months 

Mar. 

23 

3000 

// 

20 

Oct. 

15 

5       // 

18 

3600 

// 

21 

Dec. 

5 

60  days 

Feb. 

6 

4000 

Chicago 

22 

20 

90     // 

Mar. 

23 

20000 

City 

23 

15 

3  months 

18 

5000 

New  Orleans 

24 

// 

90  days 

// 

4000 

City 

25 

20 

3  months 

23 

6000 

New  York 

26 

Nov. 

3 

90  days 

Feb. 

4 

225 

City 

271 

Dec. 

1 

!  3  months 

Mar. 

4 

140 

II 

281 

30 

60  days 

3 

170 

Cincinnati 

29! 

3 

3  months 

6 

360 

City^ 

301 

15 

!3       //     ' 

18 

125 

St.  Louis 

31 1 

Sept. 

15 

1 

6       // 

18 

234 

- 

359 


NOTES  &  BILLS 


AVlIEN  ItEC'D. 

Collected  for. 

Dr.vwer. 

On  Whom  Drawn". 

!:<  WHOSE  Favob. 

1867. 

Nov. 

2 

Wilson,  Childs&  Co 

Jas.  Moultrie 

H.  Jones 

S.  Stinson 

W.  Payne 

S.  Girty 

J.  Gray 

J.  Shepler 

R.  S.  Carson 

J.  S.  Duncan 

R.  S.  Carson 

• 

W.  J.  Murphy 

S.  Stevens 

Thos.  McCabe 

J.  R.  Weldin 

S.  Crites 

F.  Wallace 

J.  R.  Weldin 

3 

R.  Banks 

R.  Carson 

Thos.  Smith 

7 

Jas.  Woods 

S.  R.  Moultrie 

Jas.  Woods 

10 

C.  Page 

Jno.  Easton 

C.  J.  Logan 

R.  Sanders 

15 

W.  Stoner 

W.  Roy 

J.  Getty 

20 

W.  Hay 

J.  Dalton 

A.  Martin 

R.  Jones 

30 

Geo.  Draper 

Ditto  &  Knox 

Geo.  Draper 

Dec 

1 

Jas.  Pillow 

Stein  &  Dawson 

Jas.  Pillow 

4 

S.  Barrett 

W.  Hare 

S.  Barrett 

R.  Knox 

J.  Moultrie 

Jno.  Milton 

R.  Good 

J.  Watt 

S.  Barrett 

F.  Garrett 

21 

Jno.  Hatch 

R.  Knox 

Jno.  Hatch 

White  &  Edwards 

Jones  &  Langdon 

White  &  Edwards 

Rich  &  Gray 

S.  Girty 

. 

Rich  &  Gray 

Jones  &  Hatch 

Brady  &  Stein 

S.  Grant 

T.  Fairbanks 

Hay  &  Wood 

R.  Roy 

J.  Goodall 

28 

Ross  &  Childs 

J.  Riggs 

S.  Dowry 

30 

R.  Banks 

Thos.  King 

F.  Johnson 

R.  Banks 

I.  1'his  book  records  all  paper  received  for  collection.    Record  its  maturity  at  the  same  time  on  the  Tickler.    When  col- 
lected, pass  it  to  the  credit  of  the  owner  on  the  Deposit  Register. 

NOTES  &  BILLS 


When. 

Remitted  to. 

Place. 

Deawer. 

In  whose  Favor. 

1867. 

Nov. 

2 

S.  Ripley 

Philadelphia 

S.  Girty 

J.  Shepler 

T.  Thompson  &  Co. 

Chicago 

S.  Crites 

J.  R.  Weldin 

13 

Duff  Bros.  &  Co. 

New  York 

Jno.  Easton 

R.  Sanders 

25 

R.  P.  Duff 

Cincinnati 

Jas.  Moultrie 

S.  Stinson 

Dec. 

1 

S.  Ripley 

Philadelphia 

W.  Hay 

Good  &  Bacon 

4 

Geo.  McCallum 

St.  Louis 

Jas.  Moultrie 

R.  Good 

15 

Duff  Bros.  &  Co. 

New  York 

C.  Ralston 

S.  Stevens 

20 

|T.  F.  Shepard 

New  Orleans 

J.  Dalton 

R.  Jones 

R.  P.  Duff 

Cincinnati 

Brady  &  Stein 

T.  Fairbanks 

18G8. 

T.  Thompson  &  Co. 

Chicago 

Simon  Payne 

Jno.  Jones 

Jan. 

25 

1  Duff  Bros.  &  Co. 

New  York 

Thos.  King 

R.  Banks 

do 

// 

L.  C.  Donnell 

S.  J.  Grant 

Feb. 

25 

T.  Thompson  &  Co. 

Chicago 

Adrian  &  Co. 

E.  Waltby 

Mar. 

1 

R.  P.  Duff 

Cincinnati 

Samuel  Green 

D.  White 

10 

T.  F.  Shepard 

New  Orleans 

W.  F.  Smith 

J.  C.  Young 

G.  McCallum 

St.  Louis 

J.  Vinsonhaler 

H.  S.  Kerr 

15 

do 

// 

Rogers  &  Co. 

J.  Dally 

2.  Ton  or  fifteen  days  before  the  maturity  of  foreign  paper,  forward  it  to  your  agent,  transferring  it  from  the  Tickler  to  tliis 
book.  Wlicn  he  notifies  you  of  its  payment,  debit  him;  or,  if  ho  remits  the  proceeds,  enter  it  to  credit  of  tlie  owner  ou 
Deposit  Register. 

300 


COLLECTIOISr    REGISTER. 
RECEIVED  FOE  COLLECTION. 


Where  Payable. 

No. 

Date. 

Time. 

Whex  Due. 

Amount. 

Memoranda. 

1867. 

1867. 

Cincinnati 

1 

Oct. 

2 

60  days 

Dec. 

4 

400 

Paid  Dec.  7 

Philadelphia 

2! 

5 

30     // 

Nov. 

7 

300 

Nov.  9 

City 

^1 

6 

1  month 

9 

260 

9 

// 

4! 

Aug. 

7 

3  months 

10 

500 

10 

Chicago 

5 

Sept. 

5 

2       // 

8 

600 

10 

City 

6 

July 

6 

4      // 

9 

1000 

.      9 

// 

7 

Sept. 

14 

60  days 

16 

2000 

16 

New  York 

^1 

Aug. 

20 

3  months 

23 

470 

30 

City 

9! 

29 

90  days 

30 

560 

Ptet'd  Protested  Nov.  30 

New  Orleans 

10  i 

July 

25 

5  months 

Dec. 

28 

980 

Paid  Dec.  31,  less  $20 

City 

11 

18 

5       // 

21 

2600 

21 

// 

12 

Nov. 

4 

30  days 

1868. 

7 

7800 

7 

// 

13  , 

July 

10 

6  months 

Jan. 

13 

100 

St.  Louis 

14' 

Oct. 

12 

60  days 

Dec. 

14 

4000 

Paid  Dec.  14,  less  S40 

City 

15  i 

11 

2  months 

3000 

14 

II 

16  1 

Feb. 

25 

10        V 

28 

200 

28 

It 

^\ 

* 

10     ^ 

150 

28 

11 

18! 

Nov. 

25 

1       // 

500 

28 

Cincinnati 

19  ! 

Sept 

26 

90  days 

140 

30,  less  $10 

City 

20 

Oct. 

26 

60  days 

1868. 

560 

28 

// 

21 

30 

;90     // 

Jan. 

31 

800 

New  York 

22  1 

28 

'3  months 

3000 

1 

FOREIGISr    COLLEOTIOIsr   REGISTER. 
REMITTED  FOR  COLLECTION. 


Collected  for. 

No. 

Date. 

Due. 

Amount. 

*      Memoranda. 

1867. 

1867. 

W.  Payne 

2 

Oct. 

5 

Nov. 

7 

300 

Received  Nov.  9 

J.  R.  Weldin 

5 

Sept. 

5 

8 

600 

Rec'd 

10 

C.  Page 

8! 

Aug. 

20 

23 

470 

Rec'd 

30 

Wilson,  Childs  k  Co. 

1 

Oct. 

2 

Dec. 

4 

400 

Rec'd  Dec. 

7 

Ourselves 

4 

Nov. 

7 

10 

2800 

Rec'd 

14 

R.  Knox 

14 

Oct. 

12 

14 

4000 

Rec'd 

14,  less  $40 

Ourselves 

10 

Nov. 

18 

21 

1200 

Rec'd 

28,  less  $12 

W.  Hay 

10 

July 

25 

28 

980 

Rec'd 

31,  less  $20 

Jones  &  Hatch 

19 

Sept. 

26 

140 

Rec'd 

30,  less  $10 

Ourselves 

1 

25 

1868. 

5000 

Rec'd 

31,  less  $50 

R.  Ranks 

22 

Oct. 

28 

Jan. 

31 

3000 

Ourselves 

26 

Nov. 

3 

Feb. 

4 

225 

do 

22 

Dec. 

20 

Mar. 

23 

20000 

do 

29 

3 

6 

1    360 

do 

24 

15 

18 

4000 

do 

31 

Sept. 

15 

18 

234 

do 

16 

Dec. 

20 

23 

4000 

* 

361 


FRIVA.TE    BAISTKER'S 
DISCOUNTS. 


1867. 

Nov. 

2 

7 
8 

16 
23 

30 

EECEIVED. 
Note  1 
//      2 

II      3 

//     4 

Exchange 

// 

// 

C.B.I 

46 
18 
19 
17 
45 
10 
1 

67 
67 
60 
73 

25 

92 

1867. 

Nov. 
Nov. 

Nov. 

Nov. 
Nov. 

Nov. 

Nov. 

Dec. 

2 

7 

8 

9 

i 

1 
16 

■ 
23 

30 
4 

PAID. 

Exchange 

It 

II 

II 

C.  B.  1 

Exchange 
// 
// 

// 

C.  B.  1 

10 
3 
6 
2 

20 



25 

2 
4 
1 
3 

' 

158 

5U 
75 
25 
50 

Nov. 

Exchange 

7 
'/ 
// 

C.  B.  1 

Exchange 
// 
// 
// 

C.  B.  1 

Note  5 
Exchange 

C.  B.  1 

23 

17 

8 

21 

37 

69 

Exchange 
// 
// 

C.  B.  1 

Exchange 
// 

C.  B.  1 

Exchange 
u 
II 
II 

C.B.I 
Exchange 

// 

C.  B.  1 

3 
4 

5 

Nov. 

10 
7 
3 
5 

12 

5 

10 

25 

70 

15 

Nov. 

21 

18 

45 

17 

2 

11 

75 

.39 

70 

Nov. 

Note  6 
Exchange 
// 

C.  B.  1 

7 
45 
10 

47 

— 

62 

47 

25 

37 
22 
21 

Nov. 

Note  7 

//     8 

//     9 

II    10 
Exchange 
// 

C.  B.  1 

Exchange 
// 
// 
// 

C.  B.  1 

16 
35 
10 
5 
56 
31 

47 

60 
50 

105 

Exchange 
// 
II 
II 
II 

C.B.I 

Exchange 

// 

C.  B.  1 

10 
3 

11 
4 
1 

50 
50 
75 
25 

154 

57 

Nov. 

40 
17 
22 
31 

31 

10 
2 
3 

110 

= 

« 

15 

1.  Tliis  is  a  record  of  all  disconnts  received  and  paid  and  all  sums  nccivod  luid  paid  for  exchanging  money.    The  amouuta 
»re  daily  passed  into  the  Casli  Book. 

302 


DISCOUNT    BOOK. 


DISCOUNTS. 

1867. 

Dec. 

4 

7 

U 

1 

21 

28 

29 
30 

31 

KECEIVED. 
Exchange 
»/ 

C.  B.  1 

625 
635 

1867. 

Dec. 

Dec. 

Dec. 
Dec. 

7 

21 

28 
31 

PAID. 
Exchange 
tt 
It 

C.  B.  1 

3 

7 

4 

10 

• 

1260 

37 
13 

50 

40 

60 

60_ 
60 

47 
33 

Dec. 

Note  11 
Exchange 
It 

C.  B.  1 

1 

37 
25 
13 

24 

Exchange 
// 

C.  B.  1 

10 
3 

15 

28 

75 

Exchange 
Note  12 
Exchange 
Note  13 
Exchange 
Note  14 
Exchange 
// 

C.  B.  1 

525 
4 

522 
26 

504 
5 

526 

505 

Dec. 

50 

F.  C.  R.,  Note  10 
C.  B.  1 

F.  C.  B.,  Note  1 
C.  B.  1  , 

1 

1 

12 

50 

2618 

■ 

Dec. 

Note  15 
//     16 

C.  B.  1 

19 
61 

80 

1 

80 

67 
67 
50 

84 

Dec. 

Note  17 
If    18 
//    19 
//    20 

C.  B.  1 

Note  21 
If    22 

C.  B.  1 

Note  23 
//     24 
n    25 

C.  B.  1 

Note  2G 

1,    27 

//     28 

//     29 

//     30 
Draft  1 
Note  31 
Draft  2 

C.  B.  1 

26 
26 
42 

48 

143 

Dec. 

26 

280 

306 

31 
47 
76 
20 
60 

Dec. 

65 
52 

83 

200 

Dec. 

1 
1 

1 
4 
1 

10 
3 

90 

113 

34 



1 

363 


364 


TICKLEE, 

rmVATE  BANKER'S  ACCOUNTS, 
NOVEMBER,  1867. 


1.  In  business  there  is  generally  a  whole  page  of  this  book  appropriated  for  each  day  of 
the  month.  And  some  bankers  keep  one  Tickler  for  discounted  paper,  and  another  for 
collections.  But  we  think  the  following  form  will  serve  without  any  inconvenience  for 
both  classes  of  paper. 

2.  As  the  notes  are  paid,  they  pass  into  the  Cash  Book ;  or,  if  collections,  to  the  Deposit 
Register.  Protested  notes,  like  No.  9,  are  returned  to  the  owner,  who  must  pay  any  ex- 
penses that  are  incurred. 


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J.  Goodall 
John  Jones 

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St.  Louis 

St.  Louis 
City 
Chicago 
City 

i 

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j 

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R.  B.  Wilson 

March  6 
D.  White 

March  18 

C.  Gipner 
J.  C.  Young 
Y.  B.  Smith 
H.  S.  Kerr 

March  23 
J.  Dalley 

Ourselves 

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Ragan  &  Morse 
C.  Page 
C.  Rhea 
W.  F.  Smith 
L.  Bradley  . 
J.  Yinsonhaler 

Roger  &  Co. 
M.  Love 
Adrian  &  Co. 
W.  Langdon 

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368 


DEPOSITOR'S   LEDGER, 

PRIVATE   BANKER'S   ACCOUNTS. 

NOVEMBER,   1867. 


1.  The  new  form  which  we  gave  of  this  Ledger  in  our  set  of  National  Bank  accounth 
^ill  also  be  found  convenient  for  the  private  banker's  business.  But  we  retain  the  old  form 
n  this  set)  leaving  it  for  the  accountant  to  choose  for  himself. 

2.  There  are  no  accounts  kept  in  this  Ledger  but  those  of  the  depositors  and  certificates 
Df  deposit.  It  is  composed  wholly  from  the  Deposit  and  Check  Kegisters.  The  accounts 
are  never  balanced  except  when  the  customer  hands  in  his  pass-book  to  be  balanced. 

3.  The  aggregate  balances  of  this  Ledger  must  agree  with  the  balance  of  the  Depositor's 
account  in  the  General  Ledger. 


369 


Dr. 


WILSON, 


CHILDS  &  CO. 


1867. 

Nov.     2 
Dec.    21 

n 


Casli 


§ 
Balance 


1867. 

1 

400 

Nov. 

2 

1 

1000 

Dec. 

7 

2 

200 

31 

2 

700 

2 

300 
1400 

4000 

Dec. 

51 

Cash 
Note  1 
Cash 


Balance 


Cr. 


400 

400 

3200 


4000 


1400 


R.  S. 

CARSON. 

18OT. 

1867. 

Nov. 

7 

Cash 

1 

375 

Nov. 

2 

Cash 

1 

600 

9 

Note  6 

1 

1000 

8 

// 

1 

260 

50 

Cash 

1 

1480 

9 

Note  3 

X 

260 

Dec. 

4 

ff 

2 

160 

50 

Cash 

2 

1400 

W.  J. 


MURPHY. 


1867. 

Nov. 
Dec. 


Cash 
// 
Balance 


1867. 

1 

200 

Nov. 

2 

1 

700 
100 

LO 

1000 

Dec. 

51 

Cash 
Note  4 


Balance 


1 

500 

1 

500 

1000 

100 

WILLIAM 


PAYNE. 


1867. 

Nov. 


Dec. 


2 

8 
LO 
50 

7 
31 


Cash 

// 

// 
Certif.  of  Dep.  No.  3 
Cash 
Balance 


1867. 

1 

400 

Nov. 

2 

1 

300 

7 

1 

200 

9 

1 

600 

23 

2 

160 

Dec. 

50 

3840 

Dec. 

51 
5] 

5500 

Cash 

II 
Note  2 
Cash 

II 

II 


Balance 


1 

700 

1 

300 

1 

300 

1 

40 

2 

360 

2 

3800 

5500 

3840 

370 


Dr. 

J.R. 

WELDIN. 

Cr. 

2 

1867. 

3? 

Cash 

Balance 

1 

m 

1867. 

Nov. 
Dec. 

7 
10 

31 

Cash 
Note  5 

1 
1 

600 
600 

1200 

1200 

Balance 

500 

ROBERT 


BANKS. 


1867. 

Nov. 
Dec. 


Cash 
Balance 


1 
1 

200 

1867. 

Nov. 
Dec. 

Dec. 

7 

8 

9 

31 

31 

2950 

Cash 

II 
Note  6 
Cash 


Balance 


1 

400 

1 

1000 

1 

1000 

2 

550 

2950 

2150 

JAMES 


WOOD. 


1867. 

Nov. 


Cash 
16      II 


1867. 

1 

100 

Nov. 

7 

1 

500 

16 

Cash 
Note  7 


600 
2000 


CHARLES 


PAGE. 


1867. 

Nov. 

8 
23 

31 

Cash 
Note  3 

1 
1 

600 
5600 

1867. 

Nov. 
Dec. 

8 
23 

§? 

Cash 

Not«8 
Balance 

1 

1 
2 

700 
450 

470 

4580 

6200 

6200 

Dec. 

Balance 

4580 

WILLIAM 


STONER. 


1867. 

1867. 

1 

Nov. 

9 

Cash 

1 

200 

Nov. 

8 

Cash 

1 

240 

Doc. 

il 

// 

2 

« 

30 

// 

2 

560 

Balance 

Dec. 

21 

// 

2 

100 

Dec. 

31 
31 

II 
Balance 

2 

4800 

• 

5700 

5700 

500 

371 


»     Dr. 


JAMES 


PILLOW. 


Gr. 


1867. 

Nov. 
Dec. 


Cash 
j3aIaD 


ance 


600 

8900 


9500 


Nov. 
Dec. 


Dec. 


^  Cash 
Note  i: 


31   Balance 


1700 

7800 

9500 

8900 


ROBT. 


KNOX. 


1867. 

Nov.  10    Cash 


Dec. 


21 

28 
31 


Balance 


1867. 

1 

200 

Nov. 

10 

2 

150 

Dec. 

14 

2 

400 

3959 

Dec. 

31 

4709 

Cash 
Note  14 


Balance 


749 
3960 


4709 
3959 


JAMES 


WATT. 


1867.  > 

Nov.!  16j 
Dec.   31 

♦  I 


h 
aiance 


1 

400 

1  3050 

1867. 

Nov. 
Dec. 

Dec. 

10 
14 

31 

3450 

1 
1 

Cash 
Note  15 


Balance 


1 

2 

450 
3000 

3450 

1 

3050 

GEORGE 


DRAPER. 


1867. 

1867. 

Nov. 

Id 

Cash 

1 

200 

Nov. 

10 

Cash 

1 

750 

Dec. 

21 

Note  11 

2 

2600 

WILLIAM 


1867. 

Nov 
Dee. 


16 
3¥ 


Cash 
n 

Balance 


200 
500 


8435 


HAY. 


1867. 

Nov. 
Dec. 


Dec. 


le    Cash 

30      A/ 

3l|  Note  10 


3ll   Balance 


372 


1 

2 

2 

1475 

1000 

960 

- 

3435 
2735 

Dr. 

JOHN 

HATCH. 

Cr. 

4 

1867. 

Nov. 

23 
80 

Certif.  of  Dep.  No.  1 
Cash 

1 
1 

700 

j    840 

1867. 

Nov. 
Dec. 

16 

28 

Cash 
Note  16 

1 
2 

'    760 
200 

• 

WHITE 


& 


EDWARDS. 


1867. 

Nov. 
Dec. 

23 

30 
28 

Cash 

Certif.  of  Dep.  No.  2 

Cash 

1 
1 
2 

800 
1000 
2400 

1867. 

Nov. 
Dec. 

16 

28 
31 

Cash 
Note  17 
Balance 

1 
2 

1750 
150 

2300 

31 

4200 

4200 

Dec. 

Balance 

2300 

JONES 


& 


HATCH. 


1867. 

Nov. 
Dec. 


Cash 

// 

n 
Balance 


1867. 

1 

400 

Nov. 

23 

2 

200 

Dec. 

l4 

2 

240 

P 

1040 

Dec. 

31 

1880 

Cash 

// 
Note  19 


Balance 


~l 

1           1 

1 

750 

2 

1000 

2 

130 

1880 

1040 

RICH 


& 


GRAY. 


1867. 

Nov.  23 
Dec.  [l4 

31 


Cash 
// 

Balance 


1867. 

1 

1 

20 

Nov. 

23 

2 

130 

Dec. 

28 

810 

Dec. 

1 

31 

960 

Cash 
Note  18 


Balance 


1 

2 

460 
500 

960 

1 

810 

373 


5     Dr 


HAY 


& 


WOOD. 


Cr. 


1867. 

Nov. 
Dec. 


23 
4 


Cash 


400 
400 


Nov. 
Dec. 


Cash 

// 

// 
N.te  20 


ROBERT 


MARTIN. 


1867. 

Dec. 


14 


Cash 


300 


Dec. 


30 


Cash 


H.  P. 


FORD  &  CO. 


1867. 

Dec. 


31 


Cash 


CERTIFICATES 


OF  DEPOSIT. 


Dec. 
Dec. 
Dec. 


31 

28 
21 


Cash, 


No.  1 
//  3 
//    5 


700 

600 

2000 


1867. 

Nov. 


Dec. 


14 


Cash, 


No.l 


//  3 
//  4 
//    5 


2N  2 
2 
2 
2 


ST4 


GENERAL    LEDGEE, 

PRIVATE  BANKER'S  ACCOUNTS. 


1.  When  there  is  no  Journal  kept,  this  book  is  posted  exclusively  from  the  Cash  Book, 
It  has  no  other  auxiliary. 

2.  It  is  closed  whenever  the  partners  desire  to  divide  the  profits  or  see  the  results  of 
their  business 


375 


Dr. 


DUFF. 


Or. 


31 


Balance 


4 

22482 

87 

1867. 

Nov. 
Dec. 

Dec. 

2 

n 

22482  n 

Cash 

Profit  &  Loss     f 


Balance 


20000 

2482  87 

22482  $7      ' 


22482  87 


WM. 


HAY. 


18<J7. 

Dec. 


31 


Balance 


4 

11241 

43 

1867. 

Nov. 
Dec. 

Dec. 

2 

n 
n 

11241 

i3 

Cash 

Profit  &  Loss     f 


Balance 


10000 
1241  ^3 


11241  43 


11241  43 


w. 


fTih. 


31 


Balance 


WOOD. 


1867. 

4 

11241 

44 

Nov. 
Dec. 

Dec. 

2 
Bl 

31 

11241 

44 

Cash 

Profit  &  Loss    f 


Balance 


10000 
1241  144 


11241  44 


11241  44 


CASH 


ACCOUNT. 


1867. 

Nov. 
Dec. 

30 
31 

31 

Sundries 
// 

1 
1 

78343 

68883 

66 

08 

1867. 

Nov. 
Dec. 

30 

31 

It 

Sundries 
Balance              f 

1 
1 
4 

51810 

88679 
6737 

74 

it 

147226 

74 

147226 

74 

Dec. 

Balance 

6737 

74 

376 


Dr 

• 

DEPOSITORS' 

ACCOUNT. 

Cr. 

2 

im. 

1867. 

Nov. 

2 

7 
8 

Cash 
// 
// 

1000 
675 
1600   i 

JSov. 

2 
7 
8 

Cash 
// 
// 

2200 
1900 
2200 

. 

9 

// 

2400 

9 

// 

3260 

10 

// 

1100 

; 

.0 

// 

3049 

\ 

16 

1/ 

1300 

] 

l6 

// 

5985 

i 

23 

II 

7920 

< 

J3 

// 

2900 

50 

II 

4920 

\ 

JO 

// 

6630 

Dec. 

4 

II 

560   ! 

Dec. 

7 

// 

8815 

7 

II 

360   1 

L4 

// 

9960 

14 

II 

430   1 

pl 

u 

2700 

21 

II 

2850   1 

J8 

II 

1410 

28 

II 

3640  i 

JO 

II 

890 

pi 

II 

6700 

n 

II 

13910 

Balance               f 

4 

30354 

Dec. 

51 

65809 

Balance 

65809 

30354 

BILLS 

RECEIVABLE. 

1867. 

1867. 

Nov. 

2 

Cash 

17400 

Nov. 

23 

Cash 

5600 

9 

// 

4200 

^0 

// 

4000 

11 

// 

1600 

Dec. 

14 

// 

2800 

23 

7 

II 

7400 

// 

4200 

Dec. 

II 

3800 

28 

// 

3600 

14 

II 

4500 

n 

// 

3800 

21 

II 

5600 

// 

5000 

28 

II 

12600 

Balance             f 

4 

68354 

29 

II 

24000 

^^^ 

30 

II 

15000 

^^^-"'"^ 

31 
31 

II 
Balance 

1254 
97354 

68354 

^^-^'^ 

97354 

Dec. 

377 


3      Dr. 


DISCOUNT 


ACCOUNT. 


Cr. 


1867. 

1667. 

JNov. 

2 
7 
8 

Cash 
// 
// 

20 
37 
12 

Nov. 

2 
7 
8 

Cash 
// 
// 

158 
69 
25 

92 

9 

// 

15 

S 

// 

39 

70 

16 

i; 

75 

16 

11 

62 

47 

2a 

II 

105 

23 

II 

154 

57 

30 

II 

31 

80 

II 

110 

Dec. 

4 

II 

15 

Dec. 

4 

II 

1260 

7 

II 

24 

7 

II 

75 

50 

21 

II 

56 

14 

II 

2618 

60 

28 

II 

12 

21 

II 

1 

80 

80 

31 

II 
Profit  &  Loss    f 

60 
4965 

28 
2^ 
30 
31 

II 
11 
II 
II 

143 
306 
200 
113 

84 
34 

5417 

74 

5417 

74 

^ 

DUPP 


(New  York.)         BROTHERS  &  CO. 


1867. 

Dec. 

28 
31 

Cash 

1 

1188 

1867. 

Dec. 

31 

Cash 

Balance              f 

1 
4 

1000 

188 

1188 

1188 

Dec. 

Balance 

188 

THOMAS 


(Chicago.)  THOMPSON  &  CO. 


1867. 

Dec. 

31 

Cash 

Balance             f 

1 
4 

4950 
1050 

1867. 

Dec. 
Dec. 

31 
31 

Cash 

1 

6000 

6000 

6000 

• 

Balance 

1050 

378 


Dr. 

R.  P. 

(Cincinnati,  0.) 

DUFF. 

Cr. 

4 

1867. 

Dec. 

30 
31 

Cash 
Balance 

1 

130 

1887. 

Dec. 

31 

Balance             f 

4 

130 

Dec. 

130 

THOMAS  F. 


(New  Orleans.) 


SHEPHERD 


186T. 

Dec. 


Dec. 


31 


31 


Cash 


Balance 


960 


960 


Dec. 


31 


Balance 


960 


PROFIT 


& 


LOSS, 


1867. 

Dec. 

31 

P.  Duff             f 
W.  Hay 
W.  Wood 

1 
1 
1 

2482 
1241 
1241 

87 
43 
44 

1867. 

Dec. 

31 

Discount           f 

3 

4965 

74 

4965 

74 

4965 

74 

BALANCE 


ACCOUNT. 


1867. 

Dec. 

31 

Cash                  f 
Bills  Receivable 
Duff  Bros.  &  Co. 
R.  P.  Duff 
T.  F.  Shepherd 

1 
2 
3 
4 
4 

6737 

68354 

188 

130 

960 

74 

1867. 

Dec. 

31 

Depositors          f 
Thompson  &  Co. 
P.  Duff 
Wm.  Hay 
W.  Wood 

2 
3 
1 

1 
1 

30354 
1050 

22482 
11241 
11241 

87 
43 
44- 

76369 

74 

76369 

74 

« 

379 


QUESTIONS  FOR  EXAMINATION  ON  PRIVATE  BANKER'S  ACCOUNTS. 

1.  What  office  does  the  Cash  Book  perform?   (N.  1,  p.  351.) 

2.  Into  what  book  are  its  contents  posted?  (N.  1,  p.  351.) 

3.  Where  are  the  aggregate  monthly  receipts  and  payments  posted  from?  (N.  2,  p.  351.) 

4.  What  is  entered  in  the  Deposit  Register  ?  (N.  1,  p.  355.) 

5.  Where  are  the  daily  amounts  carried  to?  (N.  1,  p.  355.) 

6.  Into  what  book  do  we  post  the  particulars :   (N.  1,  p.  355.) 

7.  What  does  the  Check  Register  record?  (N.  1,  p.  356.) 

8.  Where  are  the  amounts  transferred?  (N.  1,  p.  356.) 

9.  How  often  ?    (N.  1,  p.  356.) 

10.  Where  do  we  post  the  particulars?  (N.  1,  p.  356.) 

11.  What  is  entered  on  the  Bill  Book  ?  (N.  1,  p.  358.) 

12.  Where  are  the  discounts  entered  ?   (N.  1,  p.  358.) 

13.  Where  do  we  enter  the  payments?  (N.  1,  p.  358.) 

14.  Where  do  we  record  the  maturity  of  discounted  paper?  (N.  1,  p.  358.) 

15.  What  does  the  Collection  Register  record?  (N.  1,  p.  360.) 

16.  What  is  done  with  the  net  proceeds  of  collections?  (N.  1,  p.  360.) 

17.  When  are  Foreign  Notes  or  Bills  remitted  for  collection?  (N.  2,  p.  360.) 

18.  When  you  are  notified  by  your  agent  of  the  payment  of  a  collection,  how  is  it  entered  f 

(N.  2,  p.  360.) 

19.  What  is  recorded  in  the  Discount  Book  ?  (N.  1,  p.  362.) 

20.  When  and  where  are  the  amounts  carried  to?  (N.  1,  p.  362.) 

21.  How  many  Ticklers  are  kept  by  some  Bankers  ?  (N.  1,  p.  365.) 

22.  How  do  we  enter  the  notes  as  they  are  paid?  (N.  2,  p.  365.) 

23.  What  is  done  with  protested  paper?  (N.  2,  p.  365.) 

24.  Who  pays  the  expenses  of  a  Protest  ?  (N.  2,  p.  365.) 

25.  What  accounts  are  kept  in  the  Depositor's  Ledger  ?  (N.  2,  p.  369.) 

26.  What  books  is  it  composed  from  ?  (N.  2,  p.  369.) 

27.  When  are  the  accounts  in  it  balanced  ?  (N.  2,  p.  369.) 

28.  What  must  the  aggregate  balances  agree  with  ?  (N.  3,  p.  369.) 

29.  Where  are  the  contents  of  the  General  Ledger  posted  from?  (N.  1,  p.  375.) 

30.  When  is  it  closed?  (N.  2,  p.  375.) 


380 


:  a  ,i 


C'^^-". 

^'^'S!.^;. 


SELECTED    PROBLEMS   IN    ACCOUNTS. 


PROBLEM   I. 


W.,  X.,  Y.,  and  Z.  bouglit  of  A.  on  joint  account,  each  \y  $20000  worth  of  sugars,  for 
which  W.  as  manager  of  the  sales  gave  his  note  to  A.  at  four  months,  indorsed  by  the  other 
partners;  and  each  partner  made  conforming  entries  in  his  books.  Afterward,  A.  offers 
W.  5  per  cent,  discount  off  the  face  of  his  notes,  to  cash  them,  which  W.  on  conferring 
with  X.  and  Y.  agrees  to,  Z.  being  a  resident  of  Philadelphia,  to  which  place  he  had  re- 
turned after  entering  into  the  above  transaction.  W.  pays  his  own  share  and  half  of  Z/s 
in  cash,  less  the  5  per  cent,  discount.  X.  pays  his  own  share  and  one-fourth  of  Z.'s,  less 
the  5  per  cent,  discount,  in  a  draft  at  sight  on  C.,  of  New  York,  which  A.  accepts  in  pay- 
ment at  f  per  cent,  premium;  X.  allowing  him  1  per  cent,  brokerage  on  the  face  of  the  draft 
for  negotiating  it.  Y.  pays  his  own  share  and  J  of  Z.'s,  less  5  per  cent,  discount,  in  a  draft 
at  60  days'  sight  upon  Z.,  which  A.  accepts  in  payment  at  2 2-  per  cent,  discount,  drawn  for 
such  sum  as  will  cover  the  transaction,  and  1  per  cent,  brokerage  on  the  face  of  the  draft, 
which  A.  charges  for  negotiating  it.  On  advice  of  this  second  arrangement,  Z.  makes  con- 
forming entries  in  his  books.  Afterward  W.  orders  him  to  invest  the  amount  which  he  had 
advanced  for  him  in  the  above  transaction  in  bills  on  New  Orleans,  and  remit,  on  W.'s 
account,  to  B.,  of  that  place.  This  was  done  in  bills  at  2  J  per  cent,  discount,  which  closed 
the  account,,  and  covered  I  per  cent,  brokerage  on  the  face  of  the  bills,  which  Z.  charged 
for  investing. 

Required  the  correct  amounts  and  the  correct  Journal  entries  of  W.,  X.,  Y.,  and  Z.,  in 
each  of  the  above  transactions. 


A.,  B. 


PROBLEM   11. 

and  C.  purchased  the  machinery  and  hull  of  an  old  steamer  called  the 


"Vixen," 
They  afterward  sold  i  of 


for  $10000,  of  which  A.  paid  $4000,  B.  $3400,  and  C.  $2600. 

the  purchase  to  D.  for  $2000  cash,  which  they  divided  and  drew  out  of  the  concern  in  such 
proportions  as  left  them  all  i  owners.  In  these  proportions  as  owners,  and  with  this 
machinery,  they  built  the  steamer  ''  Volante."  In  addition  to  their  shares  in  the  machinery, 
A.  paid  in  cash  $1261,  B.  $1320,  C.  $1410,  and  D.  $1430.  After  running  fifteen  months, 
the  boat  was  sunk  and  lost.     The  accounts  on  her  books  then  stood  as  follows: 


Steamer  "Volante" 
Steamer  "Vixen" 
Freight  account 
Passage       // 
Wages         // 
Fuel  // 

Expense      tf 
Bills  Payable 
Bar  account    . 


Debits. 

$14894.83 
164.35 
270.67 

21923.88 
11843.02 
24134.27 

130.30 


$265.39 
35803.04 
28375.17 


104.01 
8450. 
363.71 


Effects  saved  from  the  wreck  realized  $2860.  C.  and  D.'s  shares  were  uninsured.  A 
had  $4000  and  B.  $3000  insured  on  their  shares,  valued  at  $5000  each.  The  amounts  in- 
sured when  recovered,  and  the  amount  realized  by  the  owners  from  the  wreck,  were  applied 
in  discharging  the  above  claims  against  the  vessel.  Each  owner  was  i  gain  or  loss.  Re- 
quired the  settlement  of  the  transaction  between  them.  Also,  the  division  of  D.'s  purchase- 
money  between  A.,  B.,  and  C. 


PROBLEM   III. 

A.,  B.,  and  C.  agtee  to  do  business  in  partnership,  on  the  following  terms:  C.  is  to 
manage  the  business,  and  to  have  a  commission  equal  to  half  the  net  gain  on  the  business 
for  the  management  of  it.  A.  pays  in  $2600  capital,  B.  $1400,  C.  $1200.  C.  draws  out 
$2400.  At  the  end  of  the  year  they  have  cash  on  hand,  $8000;  merchandise,  $2400. 
They  owe  $500.  Their  expense  account  is  Br.  for  $600.  The  gain  or  loss  to  be  divided 
equally. 

Required  the  balance  due  each;  also,  the  amount  of  C.'s  commission. 

381 


SELECTED   PROBLEMS. 


PROBLEM    IV. 


C.  is  manager  of  a  joint  speculation  in  flour  with  P.  and  E.,  of  which  C.  and  P.  are 
each  i  and  E  i  proprietors.  C.  takes  $12,000  worth  of  the  joint  property  to  his  private 
account,  and  pays  the  other  two  partners  their  respective  shares  of  the  same,  as  follows,  viz. : 

lie  pays  P.  $1500  in  merchandise,  and  gave  his  (C.'s)  note  for  $1000,  and  gave  up  his 
(P.'s)  own  note  which  he  held  against  him  for  $500.  He  paid  E.  his  i  ($6000)— $3000 
in  flour  belonging  to  the  Company,  and  $3000  in  his  (C.'s)  draft  on  F.,  of  New  York,  at 
90  days'  sight,  at  2  J  per  cent,  discount  for  such  sum  as  will  cover  the  $3000  and  f  per  cent, 
brokerage  on  the  face  of  the  draft,  which  E.  charges  for  negotiating  it. 

Required  C.^s  Journal  entry,  with  the  correct  amounts  composing  it. 


PROBLEM    V. 

Robert  Morris  and  myself  are  doing  business  on  joint  account.  As  manager  of  the  sales, 
I  keep  the  account  in  my  own  private  books,  under  the  title  of  1st  Co.  sales,  each  partner 
i  gain  or  loss.  On  the  same  conditions,  I  purchase  on  my  note,  $10,500  worth  of  mer- 
chandise to  ship  on  joint  account  with  R.  Morris,  to  New  Orleans.  R.  Morris  puts  into 
the  shipment  out  of  his  own  store,  400  barrels  flour  at  $6.00,  and  I  have  also  put  in  600 
barrels  of  flour  at  $6.00,  which  I  had  on  hand  belonging  to  the  1st  Co.  sales.  I  have  paid 
insurance  and  other  expenses  upon  the  shipment,  in  cash,  $660. 

Required  my  Journal  entry  for  the  joint  shipment;  also,  Morris'  Journal  entry,  when  he 
receives  my  invoice  of  the  same. 

PROBLEM    VI. 

J.  Pay,  F.  Howe,  and  J.  King,  owners  of  steamer  "Albatross." 

J.  Pay  is  one-fourth,  F.  Howe  one-fourth,  J.  King  one-half,  owners :  after  running  the 
boat  for  eighteen  months,  it  appeared  by  her  books  that 

J.  Pay  paid  in  $2400,  drew  out  $1158 
F.  Howe      //       2690,  //         1212 

J.  King       //      4950,  //         2750 

The  boat  was  then  sunk  and  entirely  lo§t.  King  had  his  share  insured  for  $3000,  which 
he  recovered,  and  applied  in  discharging  the  debts  of  the  boat. 

The  boat  owes  $650,  and  the  only  effects  that  remain  are — cash,  $820,  and  debts  due 
the  boat,  $550. 

Required  the  settlement  between  the  owners  of  the  boat. 


PROBLEM    VII. 

On  the  1st  of  January,  1846,  A.,  B.,  C,  and  P.  purchase  the  steamer  '^  Velocity'^  for 
$8000,  each  to  share  one-fourth  of  the  gain  or  loss  in  running  her.  They  pay  for  her  as 
follows : — 

A $1440 

B 1465 

C 1485 

P 1610 


$6000 
which  sums  were  placed  to  the  credit  of  their  respective  accounts  on  the  vessel's  books 

882 


SELECTED   PROBLEMS. 

For  the  balance  of  $2000  they  gave  their  joint  note,  which  was  afterwards  taken  up  with 
funds  earned  by  the  boat. 

At  the  end  of  six  months,  D.  sells  out  his  interest,  as  it  then  stood  upon  the  books,  to 
C,  who  paid  him  for  the  same  out  of  his  own  private  funds.  The  remaining  owners  some 
time  afterwards  sold  the  vessel  for  $6500;  and,  after  discharging  all  claims  against  them, 
they  have  cash  and  other  effects  left  amounting  to  86450.  The  books  were  kept  by  Single 
Entry,  and  no  settlement  took  place  since  the  commencement  of  their  connection.  Their 
accounts  now  stand  upon  their  Ledger  as  follows : — 


A.'s  account  debited  for  sums  withdrawn,  $2050,  and  credited  for  sums  paid  in,  $2255 
B.'s  //  //  //  1640,  //  ff  II  2060 

C.'s  //  //  //  1750,  //  II  II  2110 


J): 


1965, 


2090 


No  interest  to  be  computed  in  the  settlement.     Required  the  division  of  the  above  $6450 
between  A.,  B.,  and  C. 


PROBLEM    VIII. 

On  January  1,  1867,  Brewer,  Malt  &  Co.,  of  Pittsburgh,  sent  their  clerk,  W.  Porter, 
to  Louisville,  to  establish  an  agency  for  selling  their  ales.  On  30th  June  following,  the 
agency  was  discontinued,  and  they  rendered  the  following  account  to  Porter,  the  items  of 
which  both  parties  agree  are  correct,  but  Porter  thinks  the  balance  is  not  correct.  Is  it 
so  ?  or,  what  is  the  correct  balance  ? 


MR.  WALTER  PORTER 


Dr. 


In  Account  with  BREWER,  MALT  &  CO.,  Cr. 


1867. 

Jan. 


June  130 


To  Cash  advanced. 
Invoice  of  Ales , 

Cash 

Invoice  of  Ale. . 
Cash  for  sales.. 
Ale  returned... 


To  Bal.  due  B.,  M.  &  Co. 


191 

1867. 

Feb. 

1 

297 

Mar. 

i! 

389 
298 

May 

June 

1 

30 

2938 

50 

,810 

4923 

50 

608 

By  Cash  paid  for  Barley 
//  Cash  paid  for  Hops... 

//  Paid  Rent 

//  Paid  Expenses 

II  Salary 

//  Ale  returned 

//  Balance  due 


1508 
1007 
260 
40 
690 
810 
608 


4923 


50 


50 


PROBLEM    IX. 


Lea  &  Preston  purchase  of  J.  Stanley  \  of  the  steamer  "  Herald,"  which  is  ^  his  paid- 
up  capital  (at  his  credit  on  the  books)  of  $6500,  for  which  they  pay  him  $4000.  They 
have  an  account  against  the  boat  for  repairing  machinery  of  $1250,  which  it  is  agreed  is 
to  stand  as  part  payment;  the  balance  they  pay  Stanley  in  cash.  Required  the  Journal 
entry  to  introduce  the  new  owners  into  the  books. 

383 


INDEX. 


FAGS 

Abbreviations 21 

Acceptance,  form  of,  Form  XI. 119 

Accepting  a  correspondent's  draft,  Jan.  3,  p.  70 ;  Feb.  20 76 

Accepting  supra  protest  for  honor  of  drawer,  Apr.  10 86 

Account  i3ooks,  directions  for  ruling      ...........  163 

Accounts  current  with  interest 114 

forms  of .        .        .       -.        .         .20,116 

of  sales,  form  of 117 

on  joint  account 118 

personal,  Rules  III.  &  IV.,  p.  38;  note  3 23 

Profit  &  Loss,  how  kept.  Rule  VIII.,  p.  40 ;  Note  1 24 

property,  how  kept,  notes  1  &  2,  p.  35 ;  Note  7 -23 

property.  Rules  VI.  &  VII 39 

Addition,  method  of  proving       . 197 

Advance  and  discount  compounded,  Ex.  10,  11,  12,  13 198 

Average  gain  or  loss  on  Mdse.  account.  Rule 36 

Exercises 198 

Average,  General,  computations  in 211 

Balance  account.  Double  Entry 35,  113,  134,  174 

Single  Entry 17 

Balance  Sheet,  form  of 175 

Bank  Stock  received  in  legacy,  Apr.  10 84 

Bill  Books,  forms  of 48,  148 

Bill  of  Exchange  (foreign),  accepting,          .         .         .     Feb.  20 76 

collection  of,  .        .        Feb.  25        ,   .         .        .        .         .76 

payment  of,       .         .         .     Feb.  18 76 

payment  of  acceptance,         Mar.  5 80 

purchase  of,       .         .         .     Feb.  25 76 

purchase  of,  on  commission,  June  12 94 

sales  of,          ...        Feb.  28       ....        .  78 

Bill  of  Parcels,  form  of 20 

Bills  and  notes  paid  in  instalments,  Notes  3  &  4 52 

Bills  of  Exchange,  &c.,  Rule  IX 40,  118 

Bills  Payable  account,  directions  for 34 

Receivable  account,  directions  for "    .  33 

Boards,  computing  the  price  of .         .         .  210 

Bottomry  Bond,  cash  lent  on,     Feb.  25 76 

collected,          Apr.  25 88 

Cash  account,  directions  for 34 

why  balance  monthly 112 

Cash  Book  defined  .         .         .        , 9,  53,  144 

directions  for  ruling 57 

Cash  entry  for  lost  money  when  found,           .     Feb.  25 76 

received  for  investment  on  joint  account.  Mar.  1 78 

Cash  Sales  Book 8 

Check  Bool^  balanced,  with  part  of  the  checks  unpaid 219 

defined 146 

form  of 146 

Ciphers,  why  not  used  in  cent  columns,  Note  8 27 

Closing  the  Ledger,  specifications  for  exercises 213 

Commission  &  Brokerage  computation 199 

adjusted  with  a  retiring  partner,  Ex.  10 204 

Rates  by  New.  York  Chamber  of  Commerce 192 

Philadelphia  Chamber  of  Commerce 191 

Commission  Sales  Book  defined 65,  143 

Consignment,  amount  unsold  taken  to  account.         Mar.  12 80 

(foreign),  received  on  joint  account,  Apr.  20 88 

Consignments,  average  time  upon,  how  found, 68 

384 


INDEX. 

PAOB 

Consignments   (foreign),  received,  enW  for,  Feb.  1 74 

made  to  others,  Rule  XL 41 

received  and  reconsigned  to  others,  Feb.  12 74 

received.  Rule  for  conducting.  Rule  X 41 

for  finding  the  net  proceeds,  Note  25 41 

Day  Book,  Double  Entry,  definition  of 24 

opened  in  individual  business 28,  70 

Single  Entry,  definition  of 14 

opened  in  partnership .10 

Six-Column 125 

the  book  of  original  entry,  Note  1 25 

Deranged  Double  Entry  books,  to  rectify 215 

Discount,  by  bank,  entry  for,    Feb.  6 .74 

by  myself,  of  notes,  Dec.  21 30 

Drafts  received  for  collection,   Feb.  25 76 

Endorsed  Note,  form  of.  Form  XVII .  119 

Equations,  compound 209 

simple 207 

storage * 208 

Errors,  detecting  and  correcting 98,  163 

Estate,  bankrupt,  division  of  assets,  Ex.  14 217 

Exchange,  indirect 206 

Exchanges,  domestic  and  foreign 205 

Executor  of  an  estate,  payments  as,          .     Mar.  16,  17 82 

property  received  as.  Mar.  12 82 

Exercises  for  the  final  examination  of  the  student 222 

in  closing  the  Ledger     ............  213 

in  discounting  business  paper     ..........  221 

in  making  out  invoices 219 

in  opening  books 212 

in  stating  accounts  of  sale ^ 207 

in  the  settlement  of  consignments       .         .         .       * 220 

in  the  settlement  of  joint  accounts 220 

Expense  Book,  directions  for  keeping .         .  147 

Foreign  importation,  on  my  own  account,  Dec.  1,  p.  30  5  Feb.  1 74 

Freight,  computing 210 

Freight  of  vessels 192 

Gain  &  Loss,  .adjustment  between  partners 203,  204 

House,  Insurance  of,  Feb.  18 .        .       70 

Insolvent  debtors,  compounding  with,  Jan.  20 72 

note  compounding  for,      Feb.  12 74 

Insurance,  efi'ected  on  a  ship  as  agent.  Mar.  4 78 

on  a  shipment  as  agent,  May  31 92 

on  my  house,    .         .       Feb.  18 76 

on  my  store,  .  Feb.  18 76 

covering  the  premium  and  policy,  Ex.  5     .......         .         207 

settlement  with  the  insurers  for  loss  by  fire,  Feb.  28" 78 

with  the  underwriters,     .         .      June  18 94 

Interest,  abbreviated  rule  for  computing 200 

adjustment  of 180,  203 

legal  rates  in  different  States 199 

mercantile  and  legal,  rule  for  computing 201 

Inventory,  forms  of 59,  61,  137 

Invoice  Book,  defined 58,  139 

form  of .-         .         .       59,  137 

forms  of ...    20,  59 

Invoices,  exercises  in  making ,         .         .         .219 

Joint  accounts,  closing  with  a  loss,  June  1 94 

with  gain,    Mar.  5     .         .         .         .         .         ,         .         ...  .80 

with  part  sold.  Note  4,  1st  Co.  Sales 109 

z  385 


INDEX. 

rAQH 

Joint  accounts,  closing  with  property  returned  unsold,  June  25 96 

with  sales  complete,  Note  13           .......  43 

defined 42 

Rule  for  conducting  as  manager,  XII 43 

as  silent  partner,  Note  9 42 

for  finding  net  proceeds,  Note  1 43 

when  our  share  is  paid  in  by  a  partner,   Mar.  1 78 

when  we  find  our  partner's  stock.             Mar.  2 78 

when  we  find  a  part  of  partner's  stock,   Mar.  28 84 

Joint  Promissory  Note,  form  of,  XII. 119 

Journal,  checking  of.  Note  2 32 

definition  of 25 

directions  for  posting * 32 

monthly 163 

Six-Column 157 

use  of,  Note  6 25 

Journalizing,  from  the  auxiliaries 162 

monthly 163 

Rules  for 26 

Journeymen's  wages,  entry  for^  Feb.  1 126 

Judgment  Note,  form  of.  Example  9 222 

Key  to  principal  articles 183 

Ledger,  closing  in  partnership 130 

Double  Entry,  definition  of ,  23 

on  opening  and  closing 32 

opening  in  partnership 129 

private,  form  and  definition 173 

rules  for  closing 99 

Single  Entry,  definition  of 14 

on  closing        .         .         . 18 

re-opening  Ijy  Double  Entry 19 

Letter  of  Advice,  form  of.  Form  XXI 120 

of  Credit,  form  of,  Form  XIX 120 

of  Introduction,  form  of.  Form  XYIII. .120 

Loan  upon  an  endorsed  note,  Apr.  1      . ' .         .        .84 

Manufacturers'  Time  Registers,  form  of 186 

Merchandise  account,  directions  for ...  33 

daily  sales  of,  how  found  by  average.  Note  14 36 

gain  per  cent,  on  sales,  how  found •    .        .36 

imported  on  private  account,           Feb.  1 74 

insurance  of,     .        .        .        .     Feb.  18 76 

received  for  sale  on  joint  account,  Mar.  1 78 

Notes,  accepting  supra  protest,  for  honor  of  a  correspondent,  Apr.  10 86 

collection  of,  when  past  due, Apr.  20        ...         .  86 

promissory,  accommodation,  entry  for,          .         .          Jan.  31 72 

forms  of 119 

when  endorsed,  due  and  unpaid,  entry  for.  Mar.  16 82 

"Opening  Books,  specifications  and  exercises  in 212 

Orders,  forms  of 118 

Partnership  Books  closed  with  profits  equal 174 

with  profits  unequal 134 

introducing  a  new  partner 136 

opened 124 

settlements 177,  215 

settlements  by  single  entry 13,  214 

settling  after  dissolution 176 

Payment  of  draft  for  honor  of  a  correspondent,  Apr.  10 84 

of  our  note  under  protest,        .        .      Apr.  29 88 

Posting  defined,  Note  7 24 

from  the  primary  books  to  the  Ledger 162 

how  marked,  Note  8 24 

386 


INDEX. 

PAGE 

Private  Ledger,  how  opened  and  closed 173 

Profits  divided  equally 174 

divided  in  proportion  to  capital 134 

to  time  and  capital 216 

Promissory  Note,  form  of,  X 119 

Proof  Sheet,  an  improved  form  for  monthly  trial 172 

forms  of 36,  135,  171,  183 

Property,  entry  for  rent,              Jan.  18 72 

repairs,          Jan.  18 72 

received  as  executor.  Mar.  12 82 

received  from  legacy,  Dec.  14 ,        ....  .30 

Quantity  of  goods  for  a  ton,  in  freighting  .         . 194 

Receipts,  forms  of 119 

how  taken  upon  a  Day  Book  or  Cash  Book,  Feb.  20 76,  145 

Receiving  and  Forwarding  Register,  form  of         . 188 

Rents,  collecting 88 

Rules  for  closing  the  Ledger 99 

computing  time  when  bills  and  notes  fall  due 45 

debiting  and  crediting.  Single  Entry 7 

Journalizing 26 

with  illustrations       .        .        .        .        .        .        .        .38,  39, 4C,  41 

Ruling  books  of  account 163 

directions  for 56 

Running  time  on  business  paper,  in  days 45 

in  months .         .         .45 

Sales  Book  defined 62,  138 

form  of 63,  138 

Scantling,  computing  the  price  of 210 

Settlement  of  accounts  by  starring  out  balances *  218 

Ship,  purchase  of,  Jan.  20  .         .        .         .         .      ^ 72 

sale  of,  June  30 96 

Shipment,  closing  with  a  gain,  .         .        Mar.  12 80 

entry  for  returns,  .         .    Mar.  12 80 

(foreign),  loss  of,  at  sea,    .       June  18 94 

(foreign),  on  joint  account    .    Apr.  10,  15 86 

(foreign),  our  own  account,       Apr.  5         .        . 84 

on  account  of  another  person,  Feb.  12 74 

on  our  own  account,  entry  for,  Feb.  12 74 

Rule  for.  Rule  XI 41 

Specifications  and  exercises  in  stating  invoices 219 

Stock  Account,  directions  for .        .         33,  38 

Stocks,  buying  and  selling,  May  4, 90,  205 

Storage  Equations 208 

rate  for,  by  Chamber  of  Commerce,  New  York 193 

by  Chamber  of  Commerce,  Philadelphia 190 

Sundry  Crs.  account 170 

Drs.  account 170 

Suspended  List 134,  174 

Time  Registers,  forms  of 186 

Trial  Balance  (proof  sheet),  forms  of 36,  135,  171 

Sheet,  new  form  for  monthly 172 

Unexpired  time  on  business  paper,  how  found,  Ex.  51  to  55 201,  221 

Vessel,  disbursements  as  agent,        Mar.  4 78 

loan  on  bottomry  bond  of,    Feb.  25        ... 76 

purchase  of,  as  part  owner.  Mar.  2 78 

as  sole  owner,  Jan.  20 72 

receipts  as  agent,     .        .     Mar.  5  .        .        . '       .        .        .        •.        .        .        .80 

Winding  up  partnership  accounts 176 

387 


INDEX  TO  NATIONAL  BANK  BOOKS. 


PAGE 

Articles  of  Association 237 

By-Laws 235 

Bank  Note  Register 283 

Cash  Book,  General,  defined 247 

Paying  Teller's  . 269 

Receiving  Teller's 261 

Collection  Register,  City 287 

Foreign 287 

Passed  City  and  Foreign 291 

Remitted  for 290 

Certified  Checks 273 

Certificates  of  Deposit .        .         .  302 

Discount  Book 278 

Depositor's  Ledger,  Improved  form  of 297 

Dividend  Book ''.....  309 

Check,  form  of    ....            309 

Forms,  Authority  to  sign  business  paper 252 

Certificate  of  Deposit     . 274 

Certified  Check 274 

Dividend  Check .  309 

Power  of  Attorney  to  transfer  stock 252 

Protest  for  non-payment 286 

Semi-annual  Statement 310 

Teller's  daily  Statement 274 

Foreign  Bill  Book          . 280 

Bills  of  Exchange 280 

Bill  protested 266 

General  Ledger 303 

Introductory  Remarks 228 

Instalment  Lists 242  243,  244 

Scrip 245 

Journal 253 

Ledger,  Depositor's 297 

General .- 303 

Stock :         .  257 

Standing,  form  of 311 

Minute  Book 229 

GflTeringBook 275 

Protest  Book 282 

Protested  paper,  account  of,  how  kept 282 

Protest,  form  of 286 

Passed  City  and  Foreign  Collection  Register 291 

Questions  for  Examination 312 

Register  of  Signatures 268 

Stock,  Certificate  of 245 

Instalments  of 242,  243,  244 

Ledger 257 

Register 311 

388 


INDEX. 

tkOH 

Stock,  Subscription  to 241 

Transferor 246 

Transfer  of,  by  Power  of  Attorney 252 

Transfer  Book,  form  of 246 

Teller's  Statement,  form  of  .        ; »  274 

Tickler 293 


INDEX  TO  EAIL  ROAD  BOOKS. 

Construction  and  Equipment  Day  Book 315 

Dividend  Book 340 

Forms,  Local  Bill  of  Lading 322 

Petroleum  Bill  of  Lading 336 

Through  Bill  of  Lading 322 

Through  Manifest 328 

Way  Manifest 328 

General  Ledger 341 

Introductory  Kemarks 314 

Journal 331 

Ledger,  General 341 

Stock 337 

Operating  Expenditures 323 

Keceipts 329 

Questions  for  Examination 348 

Stock  Ledger 337 


INDEX  TO  PRIVATE  BANKER'S  BOOKS. 

Bill  Book 358 

Collection  Register 360 

Cash  Book 351 

Check  Register 356 

Deposit  Register 354 

Discount  Book 362 

Depositor's  Ledger     .  369 

Foreign  Collection  Register 360 

"Five-Twenty''  Bonds,  form  of .        .  364 

General  Ledger 375 

Ledger,  Depositor's 369 

General 375 

Preliminary  Remarks 351 

Questions  for  Examination 380 

Tickler 365 


389 


RECOMMENDATIONS. 


THE   FOLLOWING  KECOMMENDATIONS   INDICATE   THE   PUBLIC   SENTIMENT   IN 
REFERENCE   TO   THIS   WORK. 

Extract  from  the  official  report  of  a  Special.  Committee  of  Merchants  of  the  Chamber  of 
Commerce  of  the  city  of  New  York  : 

Chamber  of  Commerce,  New  York,  Feb.  6,  1849. 
At  a  regular  meeting  of  the  Chamber,  held  this  day,  the  following  report  was  presented, 
accepted,  and  a  copy  ordered  to  be  transmitted  to  Mr.  Duff.  The .  committee  to  whom  was 
referred  the  subject  of  Mr.  Duff's  work  on  Book-keeping,  Report,  That  they  have  examined 
the  work  submitted  to  them,  and  deem  the  favorable  opinions  which  have  already  been  ex- 
pressed by  gentlemen  of  competent  authority,  and  prefixed  to  its  pages,  well  deserved,  and 
in  this  case  very  properly  bestowed. 

Respectfully  submitted, 
(Signed)  CHARLES   M.  LEUPP,  Merchant. 

LEOPOLD  BIERWIRTH,    do. 
ROBERT  KELLY, 

President  of  the  Board  of  Education. 
Extract  from  the  Minutes. 

Prosper  M.  Wetmore,  Secretary. 

Extract  from  a  report  of  a  Special  Committee  of  Merchants  and  Accountants,  appointed 
by  the  Board  of  Managers  for  the  American  Institute,  to  examine  this  work : 

"  Your  committee  are  so  favorably  impressed  with  the  proposed  improved  method  of  Mr. 
Duff,  that  they  unanimously  concur  in  the  opinion  of  its  utility,  and  that  the  public  would 
be  benefited  by  adopting  it.'^ 

I  certify  that  the  foregoing  is  a  true  copy  of  a  Report  of  a  Special  Committee,  made  to 
and  adopted  by  the  American  Institute  of  the  city  of  New  York. 

GURDON  J.  LEEDS,  Recording  Secretary. 

''  It  contains  much  matter  that  is  important  and  interesting  to  the  merchant  and  man  of 
business,  to  whom  it  will  be  found  highly  useful.'^  '     C.  0.  HALSTEAD, 

Late  President  of  Manhattan  Bank,  N.  Y. 

"  It  is  by  far  the  most  complete  work  of  the  kind  I  have  ever  seen." 

JAMES  B.  MURRAY, 

President  Exchange  National  Bank,  Pittsburgh. 

"  I  differ  entirely  from  those  who  think  the  counting-house  the  best  place  to  learn  Book- 
keeping in.  From  this  work  it  is  learned  in  its  application  to  every  form  of  business,  un- 
trammelled by  the  peculiar  details  of  any  one  kind  of  business." 

THOMPSON  BELL, 

President  Commercial  Bank  of  Pittsburgh. 

"  No  other  work  upon  Book-keeping,  so  far  as  my  knowledge  of  them  extends,  explains 
the  subject  with  so  much  clearness  and  simplicity."  F.  W.  EDMONDS, 

Late  Cashier  Mechanics'  Bank,  Wall  Street,  N.  Y. 
390 


RECOMMENDATIONS. 

"  It  gives  a  clear  insiglit  into  this  science  through  all  its  gradations,  from  the  simple 
style  of  the  retailer  to  that  required  for  the  most  varied  and  complicated  commercial  busi- 
ness." A.  S.  FRASER, 

Cashier  Seventh  Ward  Bank,  N.  Y. 

"  I  graduated  in  Duff's  College  in  about  half  the  time  that  I  expected.  His  admirable 
system  leaves  out  nothing  essential,  nor  puts  in  any  thing  superfluous." 

J.  R.  COMPTON, 

Cashier  of  the  Niagara  Bank,  Lockport,  N.  Y. 

"  I  admire  your  system  of  Book-keeping.  Since  I  acquired  a  knowledge  of  it,  some  years 
since,  through  Mr.  David  Parsons,  I  have  put  it  in  practice  in  different  branches  of  busi- 
ness, and  have  always  found  it  work  like  a  charm.  I  have  recommended  it  to  my  friends 
as  containing  all  that  is  necessary  to  make  the  most  thorough  accountant." 

R.  LAMB, 
Cashier  People's  Bank,  Bellefontaine,  Ohio. 

"  Duff's  Book-keeping  is,  without  doubt,  the  best  adapted  to  a  business  education  ever 
published.     Students  save  about  half  the  time  and  labor  required  by  other  systems." 

JOHN  J.  JONES, 
Book-keeper  First  National  Bank,  Wheeling,  Va. 

"  The  new  method  of  checks  and  balances  will,  if  carried  out,  prevent  errors,  or,  if  made, 
they  will  be  more  readily  found  than  by  any  other  system." 

DAVID  L.  BROWN, 
Late  Book-keeper  to  the  Merc,  and  Manuf.  National  Bank,  Pittsburgh. 

"  It  is  in  every  way  calculated  to  impart  that  knowledge  necessary  for  the  experienced 
book-keeper.     Every  thing  is  made  plain*and  easy  to  be  understood." 

J.  CAROTHERS, 

Formerly  Banker,  Wood  Street,  Pittsburgh. 

"  Your  work  on  Book-keeping  is  the  most  clear  and  comprehensive  that  I  have  met 
with."  JOHN  SNYDER, 

Late  Cashier  Bank  of  Pittslaurgh. 

"  It  is  evident  that  you  have  brought  to  the  study  of  Book-keeping  a  clear  head  which 
has  lost  none  of  that  clearness  by  the  long  cultivation  of  an  accurate  science.  It  is  impos- 
sible to  make  the  subject  of  accounts  more  easy  of  comprehension  to  the  young  beginner; 
and,  what  is  often  still  more  difficult,  you  have.made  it  so  to  the  old  learner." 

W.  H.  DENNY, 
Late  Cashier  of  the  Merchants'  and  Manufacturers'  National  Bank,  Pittsburgh. 

"  I  knew  little  or  nothing  of  Book-keeping  when  I  entered  your  College.  Since  leaving 
it  I  have  had  charge  of  the  books  of  this  banking  firm  for  nearly  six  years^  and  have  kept 
them  without  difficulty.  During  my  leisure  hours  I  settled  up  the  books  of  a  mercantile 
firm,  and  have  met  with  nothing  but  what  was  fully  explained  in  your  course  of  instruc- 
tion." ■  M.  HUNNINGS, 

Of  the  firm  of  Kramer  &  Eahm,  Bankers,  Pittsburgh. 

"  I  took  charge  of  the  books  of  this  extensive  banking-house  immediately  on  leaving  your 
classes,  and  have  every  evidence  that  I  give  them  perfect  satisfaction." 

J.  W.  DAVITT, 

Of  the  firm  of  Kramer  &  Rahm,  Bankers,  Pittsburgh. 

"  My  tuition  fee  in  Duff's  College  and  the  study  of  his  new  system  of  accounts  was  among 
the  best  investments  I  ever  made."  C.  E.  BABCOCK, 

Book-keeper  State  Bank  of  Iowa,  Fort  Madison. 
391 


EECOMMENDATIONS. 

"  An  experience  of  nine  years  in  business  has  not  yet  brought  any  transaction  into  my 
hand  so  difficult  as  many  of  your  class  exercises/'  E.  SPAHR, 

Booji-keeper  to  the  National  Bank  of  Commerce,  Pittsburgh.    . 


The  following  letter  indicates  the  perfection  of  the  course  of  study  in  this  old  and  popu- 
lar institution : 

"  With  no  previous  knowledge  of  accounts,  nor  practice  in  any  kind  of  book-keeping,  ex- 
cept a  course  of  study  in  Duff's  College^  from  his  system  of  Book-keeping,  I  took  charge  of 
the  books  of  this  bank.  This  treatise  certainly  combines  the  most  comprehensive  system 
of  science  and  practice  in  accountantship  now  before  the  public.  It  is  so  judiciously  diversi- 
fied that  it  fits  the  student  for  keeping  accounts  in  any  kind  of  business.'' 

FRED.  L.  RAINBOW, 
Book-keeper  Mechanics'  National  Bank,  Pittsburgh. 

"  I  consider  this  treatise  the  most  comprehensive  and  complete  system  of  Book-keeping 
that  I  have  met  with."  T.  B.  DICKSON, 

Individual  Book-keeper  Merc,  and  Manuf.  National  Bank,  Pittsburgh. 

'^  I  readily  concur  in  all  that  is  said  of  this  work  by  other  competent  judges.  No  writer 
upon  Book-keeping  has  had  the  advantage  of  such  an  extensive  and  varied  experience  in 
business.  I  have  known  him,  personally,  for  upwards  of  twenty  years ;  a  great  part  of  that 
time  as  an  extensive  American  and  European  merchant,  as  an  extensive  ship-owner,  and  as 
a  bank  director,  &c.,  and  in  all  these  departments  he  has  borne  the  reputation  of  the  highest 
order  of  business  talents.  Every  thing  said  or  written  by  such  a  person,  on  the  subject  of 
business,  is  of  interest,  not  only  to  young  men  designed  for  business,  but  for  those  already 
engaged  in  it."  JOHN  W.  BURNHAM, 

Merchant,  No.  8  South  Street,  New  York. 

"  You  have  made  good  use  of  your  long  experience  as  a  merchant  in  making  plain  many 
of  those  matters  of  business,  the  want  of  due  comprehension  of  which  so  often  occasions 
serious  difficulties  in  the  counting-house.  The  accuracy  and  conciseness  manifested 
throughout  the  whole  work,  bear  testimony  to  the  great  care  and  labor  you  have  bestowed 
upon  it."  RICHARD  IRVIN, 

Merchant,  98  Front  Street,  New  York. 

"  Mr.  Duff  is  a  man  of  rare  qualifications*  for  business, — a  man  that  will  go  through  with 
whatever  he  takes  in  hand.  His  system  of  Book-keeping  should  be  studied  by  every  one 
who  has  any  thing  to  do  with  dollars  and  cents."  JOHN  McD.  TAYLOR, 

Merchant,  Union  Street,  New  Orleans. 

"  Mr.  Duff  is  a  merchant  of  the  first  respectability."  J.  LANDIS, 

Merchant,  New  Orleans. 

"  Mr.  Duff  has  been  recommended  to  me  as  a  merchant  of  the  highest  respectability." 

0.  H.  BLISS, 

Merchant,  New  Orleans. 

"  I  have  always  pronounced  your  system  the  most  thorough  and  diversified  course  of 
training  for  business,  before  the  public.  The  most  experienced  accountant  will  recognize, 
in  your  plan  of  rectifying  deranged  books,  a  new  and  most  ingenious  method  of  bringing 
order  out  of  confusion."  ANGUS  CAMPBELL, 

Book-keeper  to  Burdett  &  Choate,  Wholesale  Commission 
Merchants,  Memphis,  Tenn. 
392 


RECOMMENDATIONS. 

^'  Your  system  of  accounts  is  excelsior.  .  Every  man  that  studies  it  as  you  direct  cannot 
help  going  into  business  a  first-class  accountant,  and  with  a  good  general  business  know- 
ledge that  it  will  take  years  to  acquire  by  practice.  Your  Bank  Check  Book  is  an  improve- 
ment of  great  value  in  all  large  houses."  W.  D.  ELLIOTT, 

Book-keeper  to  Smith,  Sherwood  &  Co.,  Merchants. 
St.  Louis,  Mo. 

'•  I  have  been  thirty  years  a  practical  book-keeper,  and  during  my  practice  I  have  nevar 
before  met  with  a  work  which  so  fully  explains  the  whole  subject  of  accounts;  in  fact,  it  is 
the  first  treatise  that  I  have  seen  from  which  a  thorough  practical  knowledge  of  the  science 
can  be  obtained."  JOHN  CAMPBELL, 

Merchant,  53  John  Street,  New  York. 

"  There  is  no  other  system  of  Book-keeping  in  use  that  so  thoroughly  and  practically 
elucidates  this  part  of  a  business  education ;  and  your  impressive  and  interesting  lectures 
on  business,  commercial  law,  banking,  &c.,  will  be  useful  to  me  through  life." 

T.  H.  ADAMS, 
Book-keeper  for  McElroy,  Dickson  &  Co.,  Merchants,  Pittsburgh. 

"With  no  previous  knowledge  of  accounts,  except  your  course  of  study,  I  took  charge 

of  the  books  of  this  extensive  business,  and  have  kept  them  satisfactorily  for  nearly  eight 

years.     To  obtain  the  best  business  education,  I  say  go  at  once  to  the  best  college,  which 

I  am  positive  is  yours."  CHARLES   F.  WELLS, 

»  Book-keeper  for  B.  L.  Fahnestock  &  Co.,  Importers  and 

Wholesale  Druggists,  Pittsburgh,  Pa. 

"  With  no  other  education  than  I  got  in  a  common  country  school,  your  instruction  in 
Book-keeping  enabled  me  to  take  charge  of  the  books  of  an  extensive  firm  in  Wood  Street, 
and  finally  of  the  books  of  this  department  of  the  Railroad  Company,  which  I  have  now 
kept  successfully  for  eight  years."  J.  K.  SMITH, 

Book-keeper,  Treasurer  of  the  Pittsburgh,  Fort  Wayne 
&  Chicago  Railroad  Co. 

"  I  have  tested  the  thorough  business  training  I  received  in  your  excellent  establish- 
ment, by  many  years'  successful  practice  in  some  of  the  largest  firms  in  the  city." 

SIMON  JOHNSTON, 

Druggist,  Pittsburgh. 

'^  The  accountant  who  keeps  his  books  upon  your  system  will  have  the  advantage  of  im- 
provements which  are  not  found  in  any  other  system." 

HARVEY  M.  COWAN, 

Late  Book-keeper  to  Messrs.  J.  Wood  well  &  Co., 
Hardware  Merchants,  Pittsburgh. 

'•  At  the  age  of  seventeen  I  graduated  in  your  College.  I  have  since  kept  books  in  banks 
in  Springfield,  Illinois,  and  St.  Louis,  Missouri,  until  my  health  compelled  me  to  return  to 
this  vicinity,  where  I  am  keeping  the  books  of  this  extensive  firm.  It  is  due  to  you  to  say, 
that  the  longer  I  have  practised  upon  it,  the  more  I  am  satisfied  that  your  judiciously 
arranged  and  diversified  course  of  study  is  superior  to  all  others  that  I  have  seen,  in  pre- 
paring a  young  man  for  any  branch  of  business."  T.  K.  BABCOCK, 

Book-keeper  to  the  Cambria  Iron  Works,  Johnstown,  Pa. 

"Although  the  books  I  am  keeping  are  widely  diflferent  from  what  I  studied  with  you, 
yet  that  complete  knowledge  of  the  principles  of  the  science  which  I  obtained  in  your 
classes  has  enabled  me  to  conduct  every  thing  successfully." 

GEO.  W.  JACKSCN, 

Book-keeper  to  the  N.  W.  Virginia  R.  R.  Co.,  Grafton,  Va. 
393 


KECOMMENDATIONS. 

*'  "We  have  used  your  Book-keeping  for  eight  years.  During  this  time  I  have  examined 
«very  other  work  I  could  hear  of,  but  have  found  none  so  judiciously  arranged  and  so  com- 
prehensive in  all  that  relates  to  an  accountant's  education.  This  fact  is  also  attested  by 
numbers  who  had  first  studied  other  systems  and  afterward  graduated  with  us." 

T.  H.  POLLOCK, 
Principal  Polio  ik's  Commercial  College,  Chestnut  Street, 
Philadelphia,  Pa. 

"  I  do  not  hesitate  to  say  that  this  is  the  most  perfect  work  that  I  ever  examined  on  the 
subject."  T.  H.  TUTTLE, 

Banker,  Philadelphia. 

•'  Your  system  of  accounts  is  in  every  way  thorough,  without  any  superfluous  matter. 
Since  leaving  your  Institution  I  have  met  many  of  your  pupils  who  express  the  same  opi- 
nion." JOHN  S.  WILSON, 

Of  Messrs.  Kilgore,  Wilson  &  Co.,  Merchants,  Philadelphia. 

"  I  believe  your  system  to  be  the  best  now  taught."  B.  McKENNA, 

Of  A.  Diamond  &  Co.,  Booksellers  and  Stationers,  Philadelphia. 

"  Book-keeping,  as  elucidated  by  your  system,  is  the  most  thorough  and  complete  extant. 
Since  I  studied  with  you,  I  have  had  seven  years'  experience  in  the  practice  of  it." 

CHARLES  FITCH, 

Book-keeper  to  Messrs.  Allibone  &  Jenks,  Merchants,  Philadelphia. 

^'  I  believe  your  course  of  study  to  be  far  superior  to  that  given  in  Eastern  cities,  in  this 
branch  of  education."  B.  K.  JAMISON, 

Book-keeper  to  Messrs.  R.  J.  Boss  &  Co.,  Bankers,  Philadelphia. 

*'  My  present  business  brings  before  me  nearly  every  system  of  Book-keeping  in  use,  and 
it  is  to  your  admirable  system  of  accounts,  and  your  masterly  manner  of  teaching  it,  that  I 
owe  my  qualification  for  efi'ecting  the  intricate  settlements  brought  into  my  hands  by  this 
business."  JAMES  FULTON, 

Adjuster  of  Fire  Insurances,  424  Chestnut  Street,  Philadelphia. 

"  Since  graduating  in  your  College,  I  have  settled  several  sets  of  complicated  books. 
I  am  now  satisfied  that  I  have  mastered  the  science  under  your  instruction,  and  recommend 
all  who  desire  to  become  expert  and  scientific  accountants,  to  go  at  once  to  your  establish- 
ment." J.  A.  STEELE, 

Book-keeper  to  Messrs.  Sledge  &  Cress,  Merchants, 
Chappell  Hill,  Texas.    . 

*'  I  shall  ever  regard  your  instruction  in  Book-keeping,  and  your  impressive  and  interest- 
ing lectures  upon  business,  as  my  most  valuable  preparation  for  my  present  business.  Your 
system  of  accounts  can  never  be  excelled.     It  prepares  one  for  every  kind  of  business." 

B.  J.  BROWN, 

Of  Brown  &  Brother,  Druggists,  Leavenworth  City,  Kansas, 

"  I  say  from  experience,  that  no  one  who  graduates  in  your  system  of  Book-keeping,  as 
you  teach  it,  will  have  any  trouble  in  keeping  any  kind  of  books." 

S.  M.  RANKIN, 
Of  Sample  &  Rankin,  Bankers,  Keokuk,  Iowa. 

'I  had  no  idea  that  your  course  of  instruction  was  so  much  a  course  of  practice  until 
I  applied  it  in  business.  Your  system  of  Book-keeping  has  business  letters,  accounts,  in- 
voices, notes,  acceptances,  checks,  &c.,  so  thoroughly  interwoven  with  the  exercises  in 
Book-keeping,  that  I  have  met  with  nothing  in  business  that  your  excellent  course  of  train- 
ing has  not  fully  prepared  me  for.''  JAMES  H.  SMITH, 

Book-keeper  for  Smith  &  Baker,  Wool  Merchants,  Newark,  Ohio. 
394 


RECOMMENDATIONS. 

'^  I  experienced  no  difficulty  in  applying  your  excellent  instruction  to  immediate  prac- 
tice, particularly  your  six-columned  Journal,  which  proves  to  be  a  great  economizer  of  time 
and  labor,  and  a  safeguard  against  error.'^  M.  S.  STOKES, 

Book-keeper  to  Messrs.  R.  S.  Hollins  &  Co.,  Merchants, 
Nashville,  Tenn. 

"  We  take  pleasure  in  testifying  to  the  truth  of  Mr.  Stokes'  statements  in  regard  to  your 
system  of  Book-keeping,  and  fully  concur  with  him  in  recommending  it  to  the  public  as 
safe,  accurate,  and  easily  comprehended.''  11.  S.  HOLLINS  &  CO. 

"  Your  six-columned  Journal  is  a  model  of  accuracy  and  brevity,  not  likely  soon  to  be 
improved  upon ;  and  your  method  of  rectifying  deranged  books  is  a  most  valuable  ap- 
pendasre  to  your  system,  that  I  have  not  seen  nor  heard  of  elsewhere." 

A.  J.  McClelland, 

Book-keeper,  Cumberland  Iron  Works,  Tenn. 

^^  I  found  no  difficulty  in  applying  your  system  to  practice.  Your  six-column  Journal 
saves  a  large  amount  of  writing,  and  is,  therefore,  better  adapted  to  my  business  than  any 
other  system  of  Book-keeping  that  I  have  seen,"  P.  J.  FLINDALL, 

Merchant,  Trenton,  Canada  West. 

''  I  am  getting  on  finely  with  the  books  and  the  business  of  this  firm.  Success  to  your 
valuable  Institution  and  to  all  who  avail  themselves  of  the  advantages  of  your  instruction 
from  your  system  of  Book-keeping — the  best  of  all  systems  extant." 

R.  C.  ARMSTRONa, 
Book-keeper  to  Messrs.  Hibbert  &  Son,  Merchants,  Louisville,  Ky. 

"  I  advise  all  my  friends  to  enter  your  well-organized  Institution.  It  is  certainly  head- 
quarters for  a  thorough  commercial  education."  WM.  B.  MORG-AN, 

U.  S.  Treasury,  Washington,  D.  C. 

"  With  no  previous  knowledge  of  accounts  or  business  but  what  I  learned  in  less  than 
eight  weeks  under  that  able  and  systematic  course  of  instruction  for  which  your  establish- 
ment has  been  so  long  and  so  justly  celebrated,  I  have  since  kept  books  for  several  years 
in  two  mercantile  establishments;  I  have  several  times  successfully  rectified  deranged  books, 
changing  the  Single  Entry  Ledger  into  Double  Entry,  &c.  Since  1861,  my  position  in 
this  Department  required  the  greatest  skill  and  accuracy  in  Book-keeping,  the  duties  being 
more  varied  and  changeable  than  in  any  other  Bureau  in  the  Department.  Few  of  your 
graduates  have  had  their  proficiency  more  thoroughly  tested  than  mine ;  and  I  say  to  all 
desiring  a  thorough  business  education,  by  no  means  miss  your  College  and  your  lectures 
upon  business.     I  speak  of  their  value  from  experience." 

THOS.  GLEN  JONES, 

U.  S.  Treasury  Department,  Washington,  D.  C. 

"■  Duff's  Book-keeping  is  an  excellent  text-book  for  schools.  Its  teachings  are  very 
lucid,  while  it  embraces  many  points  of  interest  to  be  found  in  no  other  work  on  Book- 
keeping extant."  J.  R.  WEBSTER, 

Teacher  of  Book-keeping,  Central  High  School,  Baltimore, 

"  After  a  year's  trial  of  it  in  my  classes,  I  find  the  instruction  conveyed  by  your  Book- 
keeping is  more  complete  and  practical  than  any  other  I  have  used." 

JOHN  SHEPHERD, 

Late  Teacher  of  Book-keeping,  Columbia  College,  N.  Y. 

"  Having  ascertained  that  Duff's  system  of  business  accounts  is  the  best  in  use,  we  have 
introduced  it  as  a  text-book  in  this  college."  JOHN  K.  STEWART, 

Late  Professor  of  Book-keeping,  Southern  Commercial  College, 
Richmond,  Va. 
395 


KECOMMENDATIONS. 

"  The  crowning  excellence  of  your  system  of  Book-keeping  is  the  judicious  abridgment 
of  all  unnecessary  details  and  repetitions,  reducing  the  time  of  study  to  about  half  that  re- 
quired in  other  Commercial  Colleges.  And  my  employer  says  he  has  neyer  seen  a  person 
direct  from  College  that  went  ahead  with  all  their  books  so  promptly  and  accurately  as 
I  have."  WILSON  S.  ROOSE, 

Book-keeper  for  Ignatz  &  Herzog,  Merchants,  Chicago,  111. 

"  I  have  had  no  difficulty  with  my  books.  I  see  now  the  great  advantage  and  superiority 
of  your  well-arranged  system  of  instruction  in  Book-keeping." 

WM.  M.  HORaAN, 

took-keeper  to  J.  B.  Shay,  Merchant,  Chicago,  111. 

"  I  have  already  successfully  tested  the  value  of  your  admirable  rules  for  settling  old 
business  books  and  opening  new  ones  from  them,  and  now  readily  subscribe  to  all  that  your 
former  graduates  have  said  of  the  superiority  of  your  system  of  Book-keeping." 

D.  C.  BERGUNDTHAL, 
Book-keeper  for  S.  W.  Prather,  Merchant,  Wheeling,  W.  Va. 

"  I  believe  your  system  of  accounts,  and  manner  of  teaching  it,  unequalled  by  any  in 
use/'  R.  T.  KITTS, 

Book-keeper  to  McCullough,  Morris  &  Co.,  Wholesale  Grocers, 
Cincinnati,  Ohio. 

"Without  any  previous  knowledge  of  business  books  except  a  course  of  study  from  Duff's 
Book-keeping,  I  have  kept  the  books  of  this  extensive  business  for  about  three  years.  In 
my  opinion,  a  more  complete  system  of  science  'and  business  practice  has  never  been 
printed."  W.  L.  KEEPERS, 

Book-keeper,  Raccoon  Iron  Works,  Greenupsburg,  Ky. 

"  Duff's  system  of  accounts  is  the  most  perfect  I  have  seen.  It  contains  many  improve- 
ments, abbreviations,  and  guards  against  errors  which  I  have  not  seen  nor  heard  of  else- 
where." JAMES  H.  McCLOY, 

Book-keeper  W.  McClintock's  Carpet  Warehouse,  PittslDurgh. 

"  I  fully  concur  in  all  that  I  have  heard  in  commendation  of  your  system  of  merchants' 
accounts.  Many  years'  experience  in  keeping  books  in  this  and  other  houses,  since  I 
studied  it,  enables  me  to  say  that  I  consider  it  decidedly  the  best  work  of  the  kind  in  use." 

JAMES  E.  DICKSON, 

Book-keeper  for  Mitchell,  Stevenson  &  Co.,  Iron  Founders 
and  Merchants,  Pittsburgh. 

"  This  work  comes  to  us  with  such  high  recommendations,  from  parties  well  able  to  judge 
of  its  merits,  that  we  have  no  hesitation  in  cordially  inviting  attention  to  it  as  a  work  of 
great  utility  to  merchants." — New  York  Albion. 

"  Evidently  the  production  of  one  thoroughly  versed  in  the  art  and  science  of  accounts, 
and  artistic  in  his  views  and  manner  of  elucidating  them." — Journal  of  Commerce. 

^'  Numerous  as  are  the  publications  already  before  the  public  on  this  important  branch 
of  mercantile  education,  we  think,  from  the  emphatic  testimonials  appended  to  the  work, 
that  Mr.  Duff  has  succeeded  in  effecting  a  more  ready  and  desirable  method  of  teaching  and 
reducing  to  practice  this  great  essential  in  the  conduct  of  mercantile  affairs." — New  York 
Evening  Express,  October  80. 

896 


RECOMMENDATIONS. 


FROM   THE   PITTSBURGH  GAZETTE. 

"  Duff's  Book-keeping. — This  has  become  the  standard  work  upon  commercial  science. 
No  work  yet  published  so  thoroughly  unfolds  the  whole  subject.  We  are  informed  that  it 
is  the  only  work  yet  published  in  this  country  which  exemplifies  the  merchant's  private 
Ledger, — an  arrangement  by  which  the  results  of  the  business  cannot  be  known  by  the 
principal  Ledger ;  an  arrangement  which  mercantile  men,  conducting  a  large  business,  know 
the  value  of.     No  possible  good  can  arise  from  a  needless  exposure  of  any  man's  business." 

"  We  have  in  a  former  number  spoken  of  Mr.  Duff's  new  and  excellent  treatise  upon 
merchants'  accounts,  published  by  the  Messrs.  Harpers.  Every  merchant  will  prize  it  as 
an  indispensable  addition  to  his  library ;  and  there  are  but  few  accountants  so  old,  or  so 
wise,  as  not  to  derive  valuable  information  from  it.'' — Hunt's  Merc7ia7its'  3Iagazi7ie,  N.  Y. 

.• 

'^  A  few  weeks'  study  in  Duff's  College  prepared  me  for  keeping  the  books  of  this  exten- 
sive firm.     I  have  seen  no  other  system  so  complete."  EDWIN  REEDER, 

Book-keeper  to  the  Waterbury  &  Detroit  Copper  Co., 
Detroit,  Mich. 

"Duff's  Book-keeping  is  so  much  of  a  self-instructor,  that  I. graduated  in  twenty-one 
dayS;  and  have  kept  books  ever  since  without  difficulty."  R.  NEEL,  Jr., 

Merchant,  Looneyville,  N.  Y. 

*'  During  my  former  occupation  of  a  teacher  of  Book-keeping,  few  persons  took  greater 
pains  to  compare  different  treatises  upon  this  science,  with  a  view  to  select  the  most  thorough 
and  comprehensive ;  and  I  state,  without  hesitation,  that  Duff's  Book-keeping  will  impart 
a  more  perfect  and  practical  knowledge  of  the  science,  in  less  time,  with  less  labor  to  the 
learner,  and  with  less  trouble  to  the  teacher,  than  any  treatise  that  has  yet  appeared  upon 
the  subject."  C.  C.  COCHRAN, 

General  Book-keeper  for  B.  A.  Fahnestock's  Son  &  Co., 
Wholesale  Druggists,  Pittsburgh. 

"  My  brother  and  a  number  of  my  young  business  friends  having  at  different  times  been 
educated  for  business  from  Duff's  Book-keeping,  and  they  all  having  afterwards  proved  to 
be  highly  accomplished  accountants  and  business  men,  I  therefore  infer  that  this  branch 
of  education  is  brought  to  full  perfection  in  this  work."  JAMES  ROBB, 

President  Keystone  Savings-Bank, 
Pittsburgh,  Pa. 

"  Duff's  system  of  Merchants'  Accounts  exhibits  in  a  clear,  compact,  and  condensed  form, 
without  being  superficial,  all  the  essentials  of  a  thorough  education  in  Book-keeping." 

GEO.  R.  DUNCAN, 
Book-keeper  Iron  City  National  Bank,  Pittsburgh. 

"  I  am  recommending  all  my  friends  to  your  Commercial  College.  My  course  of  study, 
from  your  excellent  treatise  on  merchants'  accounts,  prepared  me  for  keeping  the  books  of 
this  banking-house."  WILLIAM  H.  SELLERS, 

Book-keeper  to  Austin,  Elder  &  Fletcher,  Bankers, 
Chambersburg,  Pa, 

^'  I  prefer  your  Book-keeping  and  plan  of  instruction  to  any  I  have  seen  in  the  colleges 
in  this  city.     I  have  no  trouble  in  keeping  our  books."  JAMES  WILSON, 

Book-keeper  to  C.  H.  Grant  &  Co.,  Merchants, 
Philadelphia. 

397 


EECOMMENDATIONS. 

"  I  now  hold  a  clerkship  of  the  first  class  in  this  department.  I  esteem  it  a  privilege  to 
commend  what  I  have  reason  to  regard  as  the  best  Commercial  College  in  America.  Since 
graduating,  I  have  had  my  educational  attainments  thoroughly  tested  in  a  number  of  com- 
mercial offices ;  and  it  is  due  to  your  splendid  system  of  business  accounts  to  say  that  its 
judiciously  diversified  exercises  have  enabled  me  to  fill  every  position  I  have  held  to  the 
satisfaction  of  my  employers."  SAMUEL  M.  BRYAN, 

Treasury  Department,  Washington,  D.C. 

"■  I  am  now  a  clerk  in  the  counting-room  of  these  extensive  mills,  for  which  I  was  fitted 
mainly  by  the  excellent  business  education  I  received  in  your  college.  I  now  fully  concur 
in  all  that  your  other  numerous  students  have  said  of  the  superiority  of  your  system  of 
Book-keeping  and  business  education."  N.  D.  HOOPER, 

Clerk  Salisbury  Mills,  Amesbury,  Mass. 

"  I  have  had  charge  of  this  bank  as  cashier  since  1st  October  last,  and  for  my  ability  to 
discharge  the  duties  of  this  responsible  office  you  are  entitled  to  the  credit.  The  few 
months  spent  in  your  noble  educational  establishment  studying  your  admirable  system  of 
accounts  has  been  of  great  value  to  me."  L.  W.  YALE, 

Cashier  First  National  Bank,  Mount  Pleasant,  Iowa. 


398 


DUFF'S  MERCANTILE  COLLEGE, 

No.  37  FIFTH  STREET,  PITTSBURGH,  PA. 

POUNDED  IN   1840, 

AND- 

INCORPORATED  BY  THE  LEGISLATURE  OF  PENNSYLVANIA  WITH  PERPETUAL  CHARTER. 


THE  BUSINESS  MAN'S  FAVORITE  COLLEGE  FOR  THE  LAST 

TWENTY-SEVEIT  YEARS. 


It  is  believed  to  be  the  only  Institution  of  the  kind  In  America  founded 
and  conducted  by  an  experienced  merchant.  Our  course  of  original  lectures 
upon  the  details  of 

ACTUAL  BUSINESS 

are,  to  one  going  Into  business  on  his  own  account,  worth  more  than  his 
tuition  fee,  and  may  save  him  thousands  of  dollars  In  experimental  know- 
ledge, that  will  take  him  years  to  acquire  In  business.  In  these  lectures 
we  have  no  competitors,  as  none  but  an  experienced  merchant  can  impart 
the  practical  Information  which  they  contain.  It  will  also  be  found  that  our 
system  of  accounts  is,  with  one  exception,  the  only  modern  one  In  use.  In- 
cluding comprehensive  exercises  In 

BUSINESS  WITH  FOREIGN  COUNTRIES. 

Our  system  of  Instruction,  thus  extended  into  fields  of  business  wholly 
omitted  by  others,  enables  us  to  present  our  students  with  a  valuable  col- 
lection of 

BUSINESS  FORMS 

in  every  department  of  inland  and  foreign  business.  Regular  lectures  upon 
the 

are  delivered  to  the  classes.  One  of  the  most  accomplished  and  ex- 
perienced teachers  of  Business  and  Ornamental 

PENMANSHIP 

is  In  constant  attendance  on  the  classes. 

I^or  Terms  and  all  othe?^  Particulars ^  se?id  for  our  'Pa^nphlet  Circular ^p/).  76. 

ADDRESS 

P.  DUFF  &  SON, 

399  PITTSBURGH.  PA. 


EXTRACTS  FROM  THE  CHARTER 

OF 

DUFFS  MERCANTILE  COLLEGE. 


The  preamble  of  the  Act,  after  reciting  the  circumstances  connected  with  the  establishment 
of  the  Institution  by  the  proprietor,  in  1840,  proceeds  :— 

"And  having,  through  his  professional  labors  and  publications  upon  commercial  science, 
greatly  improved  and  enlarged  the  facilities  for  obtaining  a  thorough  mercantile  education, 
in  order  to  give  increased  efficiency  and  permanence  to  his  laudable  efforts  in  promoting  the 
cause  of  Commercial  education,  and  thereby  advancing  the  ends  and  purposes  of  commerce, 
it  is  hereby  proposed  that  his  Academy  be  incorporated.     Therefore, 

"SEOTION  1.  Se  it  e^iacted  by  the  Senate  and  House  of  Representatives  of 
the  Comtnonwealth  of  ^ennsylya7iia,  in  Gene7'al  Assetnbly  met,  and  it  is  hereby 
enacted  by  the  authority  of  the  same.  That  there  be,  and  hereby  is  erected  and  estab- 
lished, in  the  County  of  Allegheny,  in  this  Commonwealth,  a  College  for  the  education  of 
merchants,  and  others,  in  the  various  branches  of  literature  and  science  immediately  con- 
nected with  a  thorough  mercantile  education,  by  the  name,  style,  and  title  of  'DUFF'S 
MERCANTILE  COLLEGE  OF  PENNSYLVANIA,'  to  be  permanently  located  in  the  city  of 
Pittsburgh,  in  said  county  of  Allegheny." 

(SECTION'S  2,  3,  4,  and  5  relate  to  the  government  of  the  College,— its  liabilities,  privi- 
leges, &c.) 

"  SECTION  6.  That  the  President,  Professors,  and  Tutors  for  the  time  being,  of  said 
College,  shall  constitute  the  Paculty  of  said  College,  and  shall  have  power  to  grant  and  con- 
firm such  degrees  in  the  sciences  taught  in  the  College,  to  such  students  and  graduates  of 
the  College,  and  others,  when,  by  their  proficiency  and  learning,  professional  eminence,  or 
other  meritorious  distinction,  they  shall  become  entitled  thereto,  as  they  may  see  fit,  and  to 
grant  graduates,  or  persons  on  whom  such  degrees  may  be  conferred,  diplomas,  or  certificates. 

"  SECTION  7.  No  religious  sentiments  shall  be  accounted  a  disability  to  hinder  or  debar 
students  from  entering  the  College,  prosecuting  their  studies,  and  receiving  diplomas  or  cer- 
tificates, or  in  any  manner  to  abridge  their  privileges  or  immunities  as  students  in  any  de- 
partment of  said  College." 

(SECTIONS  8,  9,  and  10  relate  to  the  By-Laws,  Conveyances,  &c.) 

(Signed)         JOHN  CESSNA,  Speaker  of  the  Souse  of  'Representatives, 
BENJ.  MATTHEWS,  Speaker  of  t?ie  Senate. 


Approved  the  eleventh  day  of  March,  one  thousand  eight  hundred  and  fifty-one. 

WM.  F.  JOHNSTON,  Gover7ior  of  Tennsylva^iia, 


Pennsylvania,  SB.:  I^^XCKCTAKY'S    \§>rnc]e. 

g  <t0  \\m'^\^  ^tX\\i%  that  the  foregoing  is  a  true  and  correct  copy  of  the  original  Act 
of  the  General  Assembly,  entitled,  "An  Act  to  Incorporate  Duff's  Mercantile  College  of  Pennsyl- 
vania," as  the  same  remains  on  file  in  this  office. 
^^^       Witness  my  hand  and  the  seal  of  the  said  office  at  Harrisburg,  this  25th  day  of 
'4^)    April,  1851. 

A»  L.  RUSSELL,  Secretary  of  the  Commonwealth, 
400 


s»^  V-'*-  v.- 


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YD  05852'' 


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